In a bid to stabilize the foreign exchange market and address the retail-end demand for foreign currency, the Central Bank of Nigeria (CBN) has announced the sale of $10,000 to Bureau De Change (BDC) operators at the rate of ₦1,021/$1.

This marks the second of such sale this month and the fourth in the current year.

The notification of the discounted sales was communicated to BDC operators through a fresh statement issued by the apex bank.

The initiative is aimed at facilitating transactions such as travel allowances, tuition fees, and medical payments, among others, for individuals in need of foreign exchange for personal transactions.

Under this policy, eligible BDCs are permitted to purchase a total of $10,000 from the CBN, with the condition that they sell to end users with a maximum markup of 1.5% over the buying price.

This measure is intended to prevent price gouging and ensure that the benefits of the discounted rate are transferred to consumers.

The CBN circular on the fresh sale reads: “We write to inform you of the sale of $10,000 by the Central Bank of Nigeria (CBN) to BDCs at the rate of N1,021/$1. The BDCs are in turn to sell to eligible end users at a spread of NOT MORE THAN 1.5 percent above the purchase price.

“ALL eligible BDCs are therefore directed to commence payment of the Naira deposit to the under listed CBN Naira Deposit Account Numbers from today, Monday April 22, 2024, and submit confirmation of payment, with other necessary documentations, for disbursement of FX at the respective CBN Branches.”

This latest move follows previous interventions by the CBN to support the forex market.

Recall in February 2024, the apex bank announced the sale of $20,000 to each BDC at the rate of ₦1,301/$1. Subsequently, the allocation was reduced by 50%, with FX sold at a rate of ₦1,251/$1. Earlier this month, the CBN conducted a sale of $10,000 to each BDC at a rate of ₦1,101/$1.