In a decisive move to stabilize the Nigerian currency, the Central Bank of Nigeria (CBN) has announced the sale of U.S. dollars to Bureau De Change (BDC) operators. This was revealed in a statement issued on Friday by Dr. W. J. Kanya, the Acting Director of the CBN’s Trade and Exchange Department.
The announcement follows days of significant depreciation of the naira, which fell to around ₦1,670 per dollar on both the official and parallel markets by Friday. The CBN’s latest intervention is aimed at curbing the rapid decline and restoring liquidity to the foreign exchange market.
According to the CBN’s circular, the apex bank has approved the sale of $20,000 to each eligible BDC operator at the rate of ₦1,580 per dollar. The intervention is targeted at meeting the demand for invisible transactions, such as personal travel allowances, medical bills, and tuition fees.
“This is to inform the Bureau De Change Operators and the general public that we are providing more liquidity into the market,” the CBN said in its statement. The bank further stipulated that BDC operators are allowed to sell to end-users at a margin not exceeding 1% above the purchase rate, ensuring affordability for consumers seeking foreign exchange.
BDC operators interested in the dollar purchase have been advised to make naira payments to the CBN to facilitate the transaction. The intervention is expected to provide temporary relief to the market as the naira continues to face significant pressure from heightened demand and limited supply.
This latest action highlights the CBN’s commitment to stabilizing the naira and addressing the imbalances in the foreign exchange market. However, analysts are closely watching to see if this move will bring lasting stability to the currency or if more aggressive measures will be required in the coming weeks.
