In a bid to rectify persisting distortions in Nigeria’s retail foreign exchange market, the Central Bank of Nigeria (CBN) has began the injection of $20,000 Each to Bureau De Change Operators to Stabilize Exchange Rate.
Through a new circular issued by Dr. Hassan Mahmud, the Director of Trade & Exchange Department, the CBN announced its decision to distribute $20,000 to each eligible Bureau De Change (BDC) operator across the country.
This move is part of broader efforts to achieve a market-driven exchange rate for the Naira and alleviate pressures on the parallel market.
The allocated funds will be sold at a rate of N1,301/$, reflecting the lower band rate of executed spot transactions at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on February 27, 2024.
The CBN’s initiative aims to inject much-needed liquidity into the market and stabilize the value of the Naira.
Additionally, specific guidelines outlined in the circular mandate that BDC operators sell foreign exchange to end-users at a margin not exceeding one percent (1%) above their purchase rate from the CBN. This measure is intended to prevent excessive mark-ups and protect consumers from price exploitation.
Furthermore, eligible BDCs are required to deposit their Naira payments into designated CBN Foreign Currency Deposit Naira Accounts and provide necessary documentation to facilitate disbursement at designated CBN branches in Abuja, Awka, Lagos, and Kano.
The CBN’s strategic intervention is expected to enhance the efficiency of the foreign exchange market, providing a more transparent and equitable platform for Naira trading.
By directly addressing distortions in the retail market, the CBN aims to foster a more stable economic environment conducive to growth and development.
As the CBN intensifies efforts to tackle the ongoing foreign exchange crisis, attention is also turning towards escalating inflation rates in the country.
Join our Channel...