CBN increases forex sale to BDC by 100%

The Central Bank of Nigeria (CBN) has increased the sale of foreign exchange to Bureaux De Change (BDC) operators in the country to $20,000 twice a week.

This is a 100 percent increase from the $10,000 twice a week sale previously offered by the central bank to the licenced BDCs.

Explaining the rationale behind this move, spokesman of the industry regulator, Mr Isaac Okorafor, said on Tuesday that it was to sustain liquidity in the forex market.

He said the apex bank realised that the BDCs get high volume of low-end users, which the $10,000 twice a week sale could not meet any longer.

Mr Okorafor said based on this, the CBN decided to increase the allocation by 100 percent. He stated that this would be monitored to stop fraud on the part of the forex dealers.

Also, the bankers’ bank’s image maker said the sum of $280 million has been released into the market.

He said invisibles such as basic travel allowance, personal travel allowance, medical bills and tuition received $80 million, while the small and medium enterprises (SMEs) window received $100 million.

According to him, there are opening of bids $100 million wholesale seven to 45 days’ forwards through the Deposit Money Banks (DMBs).