The Central Bank of Nigeria (CBN) has conducted another round of dollar sales to licensed Bureau De Change (BDC) operators.

The move, CBN said is to ensure liquidity in the retail market demand for eligible invisible transactions.

According to a new circular released on Thursday, July 18, the apex bank is ready to sell $20,000 to licenced BDC operators at N1,450 per US dollar. The rate is N131.65 cheaper than the official exchange rate, which closed at N1,581.65 on Wednesday, July 17, 2024.

Also, a BDC trader told Legit.ng that on Thursday, the naira in the parallel market sold at N1,610/$1.

CBN fix exchange rate for BDCs

The CBN, in the circular gave firm instructions that the beneficiary BDCs must not sell the allocated dollars to eligible customers at a rate not exceeding 1.5% above the purchase price.

This is to ensure there is no round-tripping.

The circular reads: "In line with ongoing reforms in the foreign exchange market aimed at achieving an appropriate market-determined exchange rate for the Naira, the Central Bank of Nigeria (CBN) has noted persistent distortions at the retail market level, contributing to disparities in exchange rates and bolstering activities in the parallel market.

"To address this, the CBN has authorized the sale of foreign exchange (FX) to eligible Bureau De Change (BDCs) to fulfill demand for invisible transactions.

"Each BDC will receive $20,000 at the rate of N1,450 per US dollar (representing the lower band of the trading rate at NAFEM on the preceding trading day).

"All BDCs are permitted to sell FX to eligible end-users at a margin not exceeding 1.5% above the purchase rate from the CBN. Payments in Naira should be made to specified CBN Naira Deposit Account Numbers, and BDCs must submit proof of payment along with required documentation for disbursement at designated CBN branches in Abuja, Awka, Kano, and Lagos."