Nigeria, Feb. 28 -- In a bid to address the lingering price distortions affecting the Naira's exchange rate, the Central Bank of Nigeria (CBN) has authorised the sale of $20,000 to eligible Bureaux De Change (BDCs).

The decision comes after the bank said it observed continued price distortions at the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium.

According to a circular on Tuesday by Hassan Mahmud, the Director of the Trade & Exchange Department at the CBN, each BDC will have access to the $20,000 at the rate of N1,301/$, representing the lower band rate of executed spot transactions at NAFEM for the previous trading day.

The CBN said all eligible BDCs must adhere to ...