In a bid to bolster the stability of the local currency, the Central Bank of Nigeria (CBN) has initiated the sale of US dollars to Bureau De Change (BDC) operators at a rate of N1251. This strategic move underscores the apex bank's unwavering commitment to addressing the undervaluation of the naira and ensuring favourable exchange rates across the market.
According to the latest circular issued by the CBN to BDC operators, each operator has been allocated $10,000 at the rate of N1,251 per US dollar. The directive stipulates that BDCs are to offer US dollars to eligible customers at a rate not exceeding 1.5% above the buying price. Consequently, BDCs are advised not to sell above N1,269 for each US dollar, thereby maintaining a controlled spread.
In correspondence with the circular, the CBN referenced its previous approval for the sale of foreign exchange to eligible BDCs, emphasizing the continuation of efforts to ensure liquidity and stability in the foreign exchange market. The sale of US dollars to BDCs at the specified rate aims to facilitate accessibility to foreign exchange for end users while curbing excessive fluctuations in exchange rates.
"We refer to our letter to you referenced TED/DIR/CON/GOM/001/071 in respect of the above subject, wherein the CBN approved a second tranche of sale of FX to eligible BDCs," the circular stated. "We write to inform you of the sale of $10,000 to each BDC at the rate of N1,251/$1. The BDCs are to sell to eligible end users at a spread of NOT MORE THAN 1.5 per cent above the purchase price."
The CBN's proactive measures underscore its ongoing efforts to maintain stability in the foreign exchange market and promote confidence in the local currency amidst prevailing economic challenges.
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