Naira Strengthens as CBN Sells Dollars to BDCs at N1,251/$1

In a significant move aimed at stabilizing the currency market, the Central Bank of Nigeria (CBN) has initiated the sale of dollars to Bureau De Change operators (BDCs) at a favorable rate of N1,251 per dollar.

Each BDC has been allocated $10,000 for this purpose, as indicated in a recent circular issued by the CBN. According to the circular, BDCs are instructed to sell the allocated dollars to eligible customers at a rate not exceeding 1.5% above the purchase price, translating to a maximum selling rate of N1,269 per dollar.

The resumption of dollar sales to BDCs marks a significant shift in the forex market dynamics, especially after the prolonged suspension of such sales by the central bank in 2021. This suspension was lifted earlier this year following the revocation of licenses of over 4,173 BDC operators in February.

The move by the CBN signals renewed efforts to boost liquidity in the forex market and support the strength of the naira. It also reflects the central bank’s commitment to implementing measures aimed at achieving exchange rate stability and fostering economic growth.