The Central Bank of Nigeria (CBN) yesterday approved the sale of additional Foreign Exchange (FX) to eligible Bureau De Change (BDC) operators at N1,021 to the dollar below the current market price. This was the fourth consecutive intervention since the apex bank resumed support for the segment under its current management. However, yesterday, the naira at both the official and parallel markets continued to slide, despite the sale of the greenback to BDC operators.
At the Nigerian Autonomous Foreign Exchange Market (NAFEM) window yesterday, the naira closed at N1,300/$1, which was a N65.51 decline compared to N1,234.49/$1 it closed on Monday. Similarly, on the parallel market, it weakened to N1,270/$1, compared to the N1250/$1 it exchanged on Monday. But the daily turnover saw an increase of 21.3 per cent, reaching $133.65 million yesterday, compared to the $110.17 million recorded on Monday.
The highest spot rate observed yesterday stood at N1,317/$1, with the lowest spot rate recorded at N1,000/$1. Relatedly, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and Governor of CBN, Yemi Cardoso, will today lead discussions on strengthening the naira at a roundtable organised by the Abuja Chamber of Commerce and Industry (ACCI). They would speak alongside Executive Chairman, of EFCC, Ola Olukoyede, among other private sector players. However, the latest liquidity intervention to BDCs was conveyed in a circular dated April 22, 2024, addressed to the President, Association of Bureau De Change Operators of Nigeria (ABCON), and signed by CBN Director, Trade and Exchange Department, Hassan Mahmud. The bank also mandated the BDCs to sell the dollars to eligible end users at a spread not exceeding 1.5 per cent above the purchase price.
