The Central Bank of Nigeria (CBN) has instructed Bureau de Change (BDC) operators to sell the dollar at a rate not exceeding N1,269/$, as it allocates $10,000 to each operator at the rate of N1,251/$. This directive was contained in a circular signed by Dr. Hassan Mahmud, the Director of the CBN’s Trade and Exchange Department.
The decision comes as part of the CBN’s efforts to regulate the foreign exchange market and ensure stability in currency transactions. BDCs are expected to comply with the directive and sell the allocated dollars to eligible customers while maintaining a spread of not more than 1.5 percent above the purchase price.
This move follows the CBN’s previous announcement to resume the sale of foreign exchange to BDC operators, marking a significant shift in its policy. The decision to resume sales to BDCs comes after the suspension of the former CBN Governor, Godwin Emefiele, who halted such sales over two years ago, citing violations of FX regulations.
The naira continued its upward trajectory against the US dollar, closing at N1,408/$ at the official market. This steady appreciation reflects ongoing efforts by the CBN to stabilize the exchange rate and boost confidence in the economy.
CBN Governor, Olayemi Cardoso, outlined a comprehensive strategy last month aimed at curbing inflation, stabilizing the exchange rate, and enhancing confidence in the banking system and economy. These measures include boosting foreign currency reserves and improving liquidity in the forex market.
Analysts have noted that increased liquidity in the financial system, as facilitated by the CBN’s actions, will help stabilize the forex market by providing more funds for currency transactions. Marcel Okeke, former Chief Economist of Zenith Bank, emphasized the importance of increased dollar supply to stimulate economic growth in Nigeria.
The directive to BDCs aligns with the CBN’s commitment to ensuring orderly currency transactions and fostering a stable economic environment. It is expected to contribute to the overall efforts to strengthen the Nigerian economy and promote sustainable development.
