The Central Bank of Nigeria (CBN) has taken proactive measures to address retail market demand for foreign exchange by announcing the sale of dollars to 1,588 Bureau De Change (BDC) operators.

In a statement released on Monday, the apex bank disclosed its decision to allocate $10,000 to each BDC at the rate of N1,101 per dollar, with the directive for BDCs to sell to eligible customers at a spread not exceeding 1.5% above the purchase price.

“We write to inform you of the sale of $10,000 by the CBN to BDCs at the rate of 1,101/$. The BDCs are, in turn, to sell to eligible end users at a spread not more than 1.5 per cent of the purchase price,” the statement read.

The CBN instructed the listed eligible BDCs to initiate the payment of naira deposits into four designated CBN accounts, commencing from April 8, 2024.

Additionally, BDC operators are required to submit proof of payment and other relevant documents at designated CBN branches for disbursement.

This initiative follows the previous sale of $10,000 to BDCs at a rate of N1,251 per dollar in March.

The move is part of the CBN’s ongoing efforts to stabilize the foreign exchange market and ensure liquidity to meet the needs of retail customers.

The decision to allocate dollars to BDCs comes amidst appeals from the Association of BDC Operators of Nigeria urging the CBN to adjust and lower its applicable exchange rate, currently set at N1,251 per dollar.

The Association of BDC Operators of Nigeria had earlier appealed to the CBN to adjust and lower its applicable exchange rate below the N1,251/$ it pegged for its members.

The naira has appreciated against the dollar in recent weeks, gaining over 40%, from about N1,900/$ to about N1,200/$1 now.