CBN Grants 82 BDCs $150,000 Weekly to Boost FX Liquidity
The Central Bank of Nigeria (CBN) has approved 82 recapitalized Bureau de Change (BDC) operators to access $150,000 weekly in the Nigerian foreign exchange market. This decision aims to enhance foreign exchange liquidity and strengthen the financial market, particularly in the retail segment, amidst ongoing dollar scarcity.
The recapitalized BDCs, which have met new requirements under the Bank Financial Institutions Act (BOFIA) 2020, are categorized into Tier 1 and Tier 2 based on their capital base. Tier 1 BDCs must raise a minimum capital of N2 billion, while Tier 2 BDCs require N500 million.
Analysts suggest that this weekly allocation could significantly improve liquidity in the retail segment, potentially injecting $12 million directly into the market and easing pressure on the parallel market. The CBN's reforms aim to address structural imbalances within the BDC sector, which primarily serves retail customers and small businesses, contrasting with commercial banks that cater to larger corporate transactions.
Plus234Feed summary based on reporting from Daily Trust. Read the original report below.
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