In a bid to stabilize the Nigerian naira, the Central Bank of Nigeria (CBN) has announced the sale of dollars to Bureau De Change (BDC) operators.
This move comes after the naira has been experiencing a significant decline in value at both the official and parallel markets, depreciating to approximately 1,670/$ on Friday.
According to a statement signed by the Acting Director of Trade and Exchange Department, Dr. W.J. Kanya, on Friday, the CBN aims to inject more liquidity into the market. “This is to inform the Bureau De Change Operators and the general public that we are providing more liquidity into the market,” the circular read.
“The CBN has approved the sale of $20,000 to each eligible BDC at a rate of N1,580/$, specifically to meet the demand for invisible transactions. Additionally, BDCs are permitted to sell to eligible end-users at a margin not exceeding one percent above the purchase rate from the CBN.
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“Eligible BDCs interested in this transaction are required to make the naira payment to the CBN. This intervention by the central bank is expected to ease the pressure on the naira and stabilize the foreign exchange market.
“The CBN is committed to ensuring liquidity in the foreign exchange market and maintaining a stable exchange rate,” Dr. Kanya stated. “We believe this intervention will help meet the demand for dollars and support the naira’s value.”
This move is seen as a positive step towards addressing the current forex challenges in Nigeria.
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