After a three-year hiatus, the Central Bank of Nigeria (CBN) has reinstated dollar sales to Bureau De Change (BDC) operators, aiming to stabilize the naira and reduce the gap between official and unofficial exchange rates.
In a circular published Tuesday, the CBN outlined plans to allocate $20,000 weekly to each BDC at a rate of N1,301/$, with BDCs authorized to sell to end-users with a margin not exceeding one percent above the purchase rate from the CBN.
Following the announcement of dollar sales to BDCs, the naira appreciated to N1,590 per dollar on the streets Tuesday morning, with traders anticipating further gains by the close of trading. Eligible BDCs are instructed to make naira payments to designated CBN foreign currency deposit accounts and submit confirmation of payment, along with necessary documentation, for disbursement at specified CBN branches in Abuja, Awka, Lagos, and Kano.
The resumption of dollar sales to BDCs reflects the CBN’s proactive measures to enhance currency stability and address discrepancies in exchange rates. By reinstating this mechanism, the CBN aims to boost liquidity in the foreign exchange market and mitigate speculative activities that contribute to currency volatility.
Source: Business Day