The Central Bank of Nigeria (CBN) yesterday announced a series of interventions to cushion the economy. This includes the resumption of the sale of dollars to Bureau de Change (BDC) operators as a measure to tackle inflation and stabilize the Naira. In a circular issued by Dr Hassan Mahmud, director of Trade & Exchange Department, the CBN announced its decision to distribute $20,000 to each eligible BDC operator across the country.
The initiative is part of the broader efforts to achieve a market-driven exchange rate for the Naira and alleviate the pressures feeding into the parallel market. “This allocation will be sold at a rate of N1,301/$1, reflecting the lower band rate of executed spot transactions at the Nigerian Autonomous Foreign Exchange Market (NAFEM) as of the previous trading day, dated February 27, 2024. “This strategy is anticipated to inject much-needed liquidity into the market and stabilize the Naira’s value.” Also, the circular outlined specific guidelines for the BDC operators, stipulating that all BDCs are permitted to sell foreign exchange to end-users at a margin not exceeding one percent (1%) above their purchase rate from the CBN. “This measure is intended to prevent excessive mark-ups and protect consumers from price exploitation.”
