The Central Bank of Nigeria has made another move in its efforts to stabilize the foreign exchange market by announcing the resumption of dollar sales to Bureau De Change operators.
This decision was outlined in a circular published on the CBN’s official website on Monday, signaling a proactive step to address currency liquidity challenges in the country.
According to the circular, the CBN plans to allocate $10,000 to each licensed BDC at an exchange rate of N1101 per US dollar. Additionally, the apex bank instructed BDC operators to adhere to a strict pricing guideline, whereby they are permitted to sell the allocated dollars at a maximum spread of 1.5 percent above the CBN’s official exchange rate.
This move comes amidst ongoing efforts by the CBN to maintain stability in the foreign exchange market and curb speculative activities that contribute to currency volatility.
By providing BDCs with access to dollars at a predetermined rate and imposing pricing regulations, the CBN aims to mitigate the widening gap between the official and parallel market exchange rates.
The resumption of dollar sales to BDCs is expected to improve access to foreign currency for individuals and businesses engaged in legitimate transactions, thereby fostering economic activities and promoting investor confidence.
Additionally, it underscores the CBN’s commitment to implementing proactive measures to address forex challenges and ensure the overall stability of the Nigerian economy.
Market analysts have welcomed this development, noting its potential to ease pressure on the naira and reduce the prevalence of parallel market transactions.
However, they emphasize the importance of sustained intervention and structural reforms to address underlying factors contributing to forex instability, such as low export earnings and external debt obligations.
