The Central Bank of Nigeria (CBN) has resumed the direct sale of US dollars to Bureau De Change (BDC) operators at a rate of N1,021 per dollar.
This move comes as the naira experiences a slight depreciation against the dollar after several weeks of gains.
In a circular issued by the CBN’s Director of Trade and Exchange Department, Hassan Mahmud, the apex bank announced the sale of $10,000 to BDCs at the specified rate.
The BDCs are then expected to sell to eligible end-users at a spread not exceeding 1.5 percent above the purchase price.
The circular stated, “ALL eligible BDCs are therefore directed to commence payment of the Naira deposit to the underlisted CBN Naira Deposit Account Numbers from today, Monday, April 22, 2024, and submit confirmation of payment, with other necessary documentations, for disbursement of FX at the respective CBN Branches.”
This recent dollar sale follows a similar move by the CBN in late March, where $10,000 was sold to each eligible BDC operator at a rate of N1,251/$1.
The CBN has reiterated its warning to BDCs against breaching the terms of the dollar sales, threatening sanctions, including outright suspension from further participation in the sales, for defaulters.
The naira’s value has been under scrutiny since President Bola Tinubu assumed office in May.
Inflation has soared to new highs, and the cost of living has skyrocketed.
The currency had previously reached around N1,900/$ at the parallel market. However, in recent weeks, the naira has shown some strength against the dollar.
In addition to the forex market interventions, the Nigerian authorities have intensified their crackdown on cryptocurrency platforms like Binance and illegal BDCs.
On March 1, the CBN revoked the licenses of 4,173 BDCs due to compliance failures, underscoring the regulatory tightening in the financial sector.
The CBN’s latest dollar sales to BDCs aim to stabilize the foreign exchange market and mitigate further depreciation of the naira.
By selling dollars directly to BDCs, the CBN seeks to ensure liquidity and accessibility of foreign exchange for end-users, thereby supporting economic activities and easing the pressure on the naira.
