The Central Bank of Nigeria (CBN) has taken steps to stabilize the foreign exchange market by issuing a circular to Bureau De Change operators (BDCs), authorizing the sale of $10,000 to each BDC at a rate of N1,101/$1.
According to a circular obtained by Nairametrics, BDCs must sell the allocated dollars to eligible customers at a rate not exceeding 1.5% above the purchase price.
This implies that BDCs are expected to sell the dollars at a maximum rate of N1,117/$1.
This latest development indicates a strategic move by the CBN to control the exchange rate and prevent excessive naira depreciation.
The selling rate prescribed by the CBN is notably lower than the N1,251.05/$1 rate recorded at the end of last week, based on data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).
By providing dollars to BDCs at a predetermined rate, the CBN aims to enhance liquidity in the foreign exchange market while ensuring exchange rate stability.
Experts say the intervention is part of the CBN’s efforts to manage currency fluctuations and promote confidence in the Nigerian economy.
