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The Central Bank of Nigeria (CBN) has taken steps to stabilize the exchange rate by offering discounted US dollar sales to Bureau de Change (BDC) operators. This move comes as the naira weakened in the official foreign exchange market, with rates dropping to N1,667.42, while the parallel market settled at N1,675 per US dollar.
These rates have reached levels that typically trigger the CBN’s intervention, prompting the apex bank to act in order to calm the volatility in the currency market.
In a statement, the CBN announced that it has approved the sale of $20,000 to each eligible BDC operator in the informal currency market at a rate of N1,590 per US dollar, reflecting a discount of N77.42 from the official rate recorded on Wednesday.
In the parallel market, the naira declined from N1,660 to N1,675 per dollar as demand for foreign exchange to cover invisible transactions, such as personal travel allowances and school fees, continued to rise.
To address growing demand and boost foreign exchange liquidity, the CBN introduced this measure to help meet retail market needs for eligible invisible transactions.
“This is to inform Bureau de Change (BDC) operators and the general public that the CBN will be providing additional liquidity to this segment of the foreign exchange market,” the bank said in its statement.
The CBN clarified that all BDC operators are required to sell to eligible end-users with a margin of no more than 1% above the purchase rate from the central bank. This measure aims to ensure market stability and address the increasing pressure on the naira.
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