In a bid to stabilize the currency market, the Central Bank of Nigeria (CBN) has initiated direct sales of US dollars to Bureau De Change (BDC) operators at the rate of N1,021 per dollar.
According to Hassan Mahmud, Director of the CBN’s Trade and Exchange Department, the move aims to facilitate access to foreign exchange for eligible end-users.
Mahmud stated, “We write to inform you of the sale of $10,000 by the Central Bank of Nigeria (CBN) to BDCs at the rate of N1,021/$1. The BDCs are in turn to sell to eligible end users at a spread of NOT MORE THAN 1.5 percent above the purchase price.”
The CBN’s circular, posted on its website, outlined directives for BDCs to initiate payment to designated CBN accounts for the disbursement of foreign exchange.
This action by the CBN comes amidst a slight depreciation of the naira against the dollar, following weeks of gains. In late March, the CBN had also sold $10,000 to eligible BDC operators at a different rate of N1,251/$1.
The CBN emphasized the consequences for BDCs found breaching the terms of the dollar sales, including possible suspension from further participation.
Since President Bola Tinubu’s assumption of office in May, the naira has experienced significant fluctuations, reaching about N1,900/$ at the parallel market a few months ago, before recent gains.
Furthermore, the Nigerian authorities have intensified efforts to regulate the cryptocurrency market, with a crackdown on platforms like Binance and illegal BDCs.
In March, the CBN revoked the licenses of 4,173 BDCs due to compliance failures.