CBN intervenes in forex market, announces sale of dollars to BDCs

In an effort to stabilize the Nigerian naira, the Central Bank of Nigeria (CBN) has announced the sale of dollars to Bureau De Change (BDC) operators.

The move comes after the naira suffered a significant drop in value on the official and parallel markets, depreciating to around 1,670/$ on Friday.

According to a statement signed by the Acting Director of the Department of Trade and Exchange, Dr. WJ Kanya, on Friday, the CBN intends to inject more liquidity into the market. “This is to inform the Bureau of Exchange Operators and the general public that we are providing more liquidity to 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. In addition, BDCs are permitted to sell to eligible end users at a margin not exceeding one percent above the purchase price from the CBN.

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“Eligible BDCs interested in this transaction are required to make naira payments to the CBN. This intervention by the central bank is expected to ease 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 said. “We believe this intervention will help meet the demand for dollars and support the value of the naira.”

This move is seen as a positive step in addressing the current foreign exchange challenges in Nigeria.

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