Bureau de Change News: Currency Fluctuations to Expect in Nigeria

In Nigeria, the Naira has been experiencing significant fluctuations in recent years, making it challenging for travelers and businesses to navigate the currency market. The exchange rate has been influenced by various factors, including global economic trends and government policies.

The Central Bank of Nigeria (CBN) has been actively involved in managing the exchange rate, implementing measures such as the introduction of the Investors and Exporters (I&E) window to stabilize the market. This move has helped to reduce volatility and attract foreign investment.

As a result of these efforts, the Naira has shown signs of stability, with a relatively stable exchange rate against major currencies like the US Dollar. However, it's essential to stay informed about currency fluctuations to make the most of your transactions.

A unique perspective: Currency Substitution News

The Central Bank of Nigeria (CBN) has been making some significant moves to provide more liquidity to the market. The CBN has approved the sale of $20,000 to each eligible Bureau De Change (BDC) operator at the rate of N1,580 to a dollar.

This is a significant increase from the rate of N1,450 per dollar that the CBN sold to BDCs in July. The CBN is hoping to meet the demand for invisible transactions with this move.

BDCs are allowed to sell to eligible end-users at a margin not more than one per cent above the purchase rate from CBN. This means that BDCs can sell the dollars to customers at a slightly higher rate than what they purchased them for.

Payment confirmation and all necessary documentation for disbursement need to be submitted at the appropriate CBN branches in Abuja, Awka, Kano, and Lagos for collection of the $20,000.

The CBN has given instructions to BDCs on how to handle the sale of dollars. They must not sell the allocated dollars to eligible customers at a rate not exceeding N15.59 profit on each dollar they sell to their customers.

BDCs are required to pay in Naira into specified CBN accounts. This is a crucial step in the process, as it ensures that the funds are properly allocated and accounted for.

The CBN has designated specific branches in Lagos, Akwa, Kano, and Abuja where BDCs must submit the receipts for disbursement. This is to ensure that the process is carried out efficiently and effectively.

Here are the CBN's instructions on the maximum profit margin for BDCs:

Note that the maximum profit margin varies depending on the rate at which the dollars are sold to the BDCs.