In a significant move aimed at stabilizing the forex market, the Central Bank of Nigeria (CBN) has announced a reduction in the exchange rate within the Bureaux De Change (BDC) segment by 3.4 percent or N50.5, bringing it to N1,269.8 per dollar. This announcement coincides with the commencement of another round of dollar sales to eligible BDCs.
The CBN’s decision marks a departure from the exchange rate set in February, where it sold $20,000 to each of 785 BDCs at N1,310 per dollar. At that time, the apex bank directed BDCs to sell to end-users at a spread of not more than 1.0 percent of the purchase price, equivalent to N1,314.01 per dollar.
However, in its latest directive, the CBN has revealed plans to sell another $10,000 to each BDC at an exchange rate of N1,251 per dollar. Under this arrangement, BDCs are instructed to sell to end-users at a spread of not more than 1.5 percent of the purchase price, amounting to N1,263.51 per dollar.
Dr. Hassan Mahmud, Director of the Trade & Exchange Department at the CBN, conveyed the decision in a letter addressed to the President of the Association of Bureaux De Change Operators of Nigeria (ABCON). In the letter, referenced TED/DIR/CON/GOM/001/071, Dr. Mahmud stated, “We refer to our letter to you… wherein the CBN approved a second tranche of sale of FX to eligible BDCs. We write to inform you of the sale of $10,000 to each BDC at the rate of N1,251/$1.”
This move by the CBN underscores its commitment to maintaining stability in the forex market amidst ongoing economic challenges. The adjustment in the exchange rate aims to enhance accessibility to foreign exchange while ensuring transparency and efficiency in its distribution across the BDC segment.
Market analysts anticipate that the revised exchange rate and ongoing dollar sales will contribute to easing pressure on the naira and fostering confidence among market participants. As Nigeria navigates its economic landscape, such measures play a crucial role in fostering a conducive environment for sustainable growth and development.
