In a move aimed at bolstering the value of the Naira in the foreign exchange market, the Central Bank of Nigeria (CBN) has commenced another round of dollar sales to Bureau De Change (BDC) operators.
This initiative is part of the CBN’s ongoing efforts to stabilize and strengthen the Naira against foreign currencies.
Aminu Gwadabe, the National President of the Association of Bureau De Change Operators, confirmed this development on Monday.
According to Gwadabe, the CBN has initiated the sale of $10,000 FX to each eligible BDC at the rate of N1,101 per dollar.
Under the new arrangement, all licensed BDCs are authorized to sell foreign exchange to end-users at a margin not exceeding 1.5 percent above the purchase rate from the CBN.
This means that BDCs are mandated to procure dollars at N1,101 per dollar and sell them at a maximum rate of N1,117.52.
Gwadabe expressed affirmation, stating, “It is true, CBN had started selling dollars to our members at N1,101/$1, it was reviewed downward from N1,251 per dollar.”
This adjustment comes as a response to the recent appeal by BDCs for a lower FX allocation, aiming to sustain the ongoing appreciation of the Naira in the forex market.
The timing of this move is particularly noteworthy, occurring just 48 hours after BDCs advocated for FX allocation below the previous rate of N1,251 per dollar. Last month, the CBN had sold $10,000 at an exchange rate of N1,251 to BDCs as part of efforts to defend the Naira in the foreign exchange market.
The sustained appreciation of the Naira against the dollar over the past month underscores the effectiveness of the CBN’s interventions.
As of last Friday, the Naira stood at N1,251.05 per dollar, reflecting a positive trend in the forex market.
The CBN’s proactive measures, including the recent dollar sales to BDCs at the revised rate of N1,101 per dollar, demonstrate its commitment to maintaining stability and confidence in the Nigerian currency.
These interventions are crucial for fostering economic growth, attracting foreign investment, and ensuring a favorable environment for businesses and consumers alike.
As stakeholders monitor the impact of these latest interventions, expectations remain high for continued progress in strengthening the Naira and sustaining its appreciation in the foreign exchange market.
The collaboration between the CBN and BDCs underscores the importance of coordinated efforts in achieving monetary stability and driving sustainable economic development in Nigeria.
