The Central Bank of Nigeria (CBN) resumed dollar sales to Bureaux De Change (BDC) operators on Thursday, July 18, with plans to disburse $20,000 to each licensed operator.
The apex bank announced that this forex injection aims to curb market distortions, boost liquidity, and stabilize the naira.
In a circular addressed to all BDC operators and the public, the CBN highlighted the ongoing distortions in the retail end of the market, which are feeding into the parallel market and widening the exchange rate premium.
The circular was signed by Aliyu Mahdi on behalf of the Acting Director of the Trade and Exchange Department.
Eligible BDCs can purchase up to $20,000 at a fixed rate of N1,450 per dollar, aligned with the previous day’s lower NAFEX rate.
BDCs can sell dollars to eligible end-users at a maximum margin of 1.5 percent above the purchase rate from the CBN.
To ensure compliance, BDCs must make Naira payments into designated CBN accounts and submit necessary documentation for disbursement at specified branches in Abuja, Lagos, Kano, and Awka in Anambra State.
The CBN attributed its decision to the widening gap between official and parallel market exchange rates, which it blamed on retail market distortions.
The bank expressed hope that this move would reduce pressure on the naira.
Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), stated that the new dollar injections will induce liquidity and stabilize the naira.
He added that the move has already had a positive impact, with the naira appreciating from N1,640/$ to N1,570/$ in the parallel market.
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