Business
CBN intervenes in forex market, announces Dollar sale to BDCs
In a bid to stabilize the Nigerian naira, the Central Bank of Nigeria (CBN) has announced the sale of dollars to Bureau De Change (BDC) operators.
This move comes after the naira has been experiencing a significant decline in value at both the official and parallel markets, depreciating to approximately 1,670/$ on Friday.
According to a statement signed by the Acting Director of Trade and Exchange Department, Dr. W.J. Kanya, on Friday, the CBN aims to inject more liquidity into the market. “This is to inform the Bureau De Change Operators and the general public that we are providing more liquidity into the market,” the circular read.
“The CBN has approved the sale of $20,000 to each eligible BDC at a rate of N1,580/$, specifically to meet the demand for invisible transactions. Additionally, BDCs are permitted to sell to eligible end-users at a margin not exceeding one percent above the purchase rate from the CBN.
READ ALSO:CBN raises Standing Deposit Facility rate to control liquidity
“Eligible BDCs interested in this transaction are required to make the naira payment to the CBN. This intervention by the central bank is expected to ease the pressure on the naira and stabilize the foreign exchange market.
“The CBN is committed to ensuring liquidity in the foreign exchange market and maintaining a stable exchange rate,” Dr. Kanya stated. “We believe this intervention will help meet the demand for dollars and support the naira’s value.”
This move is seen as a positive step towards addressing the current forex challenges in Nigeria.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
