The Central Bank of Nigeria (CBN) has proactively addressed currency fluctuations and met essential foreign exchange demands by issuing a circular to Bureau De Change (BDC) operators. This circular announces the direct sale of US dollars to BDCs at a discounted rate of N1,021 per dollar.
This marks the second sale in the month and the fourth in the current year, reflecting the CBN’s commitment to managing currency volatility and ensuring adequate forex supply.
In February 2024, the CBN announced the sale of $20,000 to each BDC at a rate of N1,301/$. Subsequently, the bank reduced the allocation by 50%, selling FX at N1,251/$1. Earlier this month, $10,000 was allocated to each BDC at N1,101/$1.
Under the new policy, eligible BDCs are authorized to sell $10,000 to end users, covering invisible transactions such as travel allowances, tuition fees, and medical payments. BDCs must sell to end users with a maximum markup of 1.5% above the purchase price, ensuring fair pricing and consumer benefit.
However, despite the CBN’s interventions, Naira has faced pressure from the official and black markets. On April 22, 2024, the exchange rate against the Dollar on the official NAFEM window declined to a week-to-date low of N1,234.49/$1, contrasting with the previous week’s rate of N1,169.99/$1.
Additionally, the Naira has remained above the N1200/$ band in the unofficial market, interrupting its recent winning streak against the Dollar. This halt coincided with the strengthening of the US dollar, contributing to the Naira’s stabilization.
In an earlier circular, the CBN listed 1588 eligible BDCs, indicating a potential cost of approximately $15.88 million if all BDCs secure the dollar allocation. Yemi Cardoso, CBN governor, emphasized the minimal and targeted nature of interventions in the BDC segment, aimed at integrating it effectively into the broader market.
As concerns persist regarding depleting foreign exchange reserves, which saw a $2.33 billion decline in 31 days, the CBN remains vigilant in implementing measures to stabilize the currency and ensure market liquidity.
