The Central Bank of Nigeria (C.B.N) has once again initiated the sale of dollars to Bureau De Change (B.D.C) operators, a move aimed at stabilizing the foreign exchange market. This announcement comes as the apex bank seeks to address the ongoing challenges in the forex market and ensure liquidity.
The decision was made public through a circular uploaded to the C.B.N’s website on Monday, signaling the central bank’s commitment to managing the country’s foreign exchange reserves effectively.
According to the circular, the C.B.N is set to provide $10,000 to each B.D.C at the rate of N1101 per US dollar. Additionally, the C.B.N has directed B.D.C operators to sell the dollars at a spread not exceeding 1.5 percent above the C.B.N’s official exchange rate.
This move by the C.B.N is significant as it seeks to regulate the activities of B.D.C operators and curb sharp practices that could lead to market distortions. By imposing a spread limit, the C.B.N aims to ensure that B.D.C operators sell foreign currency at rates close to the official exchange rate, thereby promoting transparency and stability in the forex market.
The resumption of dollar sales to B.D.C operators aligns with the C.B.N’s efforts to maintain a stable exchange rate regime and support economic growth. Access to foreign exchange at reasonable rates is crucial for businesses, importers, and investors, as it facilitates international trade and investment activities.
However, challenges persist in Nigeria’s forex market, including foreign exchange scarcity, speculative activities, and fluctuations in oil prices, which impact the country’s foreign reserves. The C.B.N’s intervention through dollar sales to B.D.Cs is part of its broader strategy to manage these challenges and ensure the stability of the naira.
Despite the C.B.N’s efforts, some analysts have expressed concerns about the sustainability of the current exchange rate policy and the need for broader economic reforms to address structural imbalances in the Nigerian economy.
As the C.B.N resumes dollar sales to B.D.C operators, stakeholders will be monitoring the impact of this intervention on the forex market and the broader economy. Sustainable solutions to Nigeria’s forex challenges will require coordinated efforts from policymakers, regulators, and market participants to address underlying issues and promote economic stability.
In the meantime, the C.B.N remains focused on implementing measures aimed at maintaining a stable exchange rate regime and fostering economic resilience in Nigeria.
Follow us on Socials: