The CBN has authorized the sale of $20,000 to each BDC at N1,450/$1 to bolster the naira and address forex market challenges. This initiative aims to stabilize exchange rates and reduce disparities between official and parallel markets. Stay informed on CBN's efforts to enhance currency stability and economic resilience.
The Central Bank of Nigeria (CBN) has announced a strategic initiative to strengthen the naira by approving the sale of $20,000 to each Bureau De Change (BDC) at a favorable rate of N1,450/$1. This decision aims to meet demand for invisible transactions, combat the widening exchange rate gap in the parallel market, and stabilize the currency.
BDCs are mandated to sell FX with a maximum margin of 1.5% above the purchase rate, ensuring a controlled profit margin of N21.75 per dollar. This move is part of ongoing market reforms to achieve a balanced exchange rate and marks the fifth attempt since the CBN's 2021 suspension of FX sales to BDCs.
With approximately 1,583 approved operators, this intervention is expected to inject about $21.58 million into the retail market, potentially easing exchange rate discrepancies. Stay updated for more insights on currency markets and economic developments.
