JUST IN: Again, CBN Sells Dollars to BDCs Below Market Rate at N1,101/$1

Once again, the Central Bank of Nigeria (CBN) has initiated measures by issuing a circular to Bureau De Change operators (BDCs), granting authorization for the sale of $10,000 to each BDC at a fixed rate of N1,101 per dollar.

As per a circular obtained by Nairametrics, BDCs are mandated to sell the allocated dollars to eligible customers at a rate not surpassing 1.5% above the purchase price. This implies that BDCs are required to sell the dollars at a maximum rate of N1,117 per dollar.

This recent move reflects the CBN’s strategic efforts to manage the exchange rate and mitigate excessive depreciation of the naira.

The selling rate stipulated by the Central Bank stands notably lower than the N1,251.05 per dollar rate recorded at the close of the previous week, based on data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).

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By furnishing dollars to BDCs at a predetermined rate, the CBN seeks to augment liquidity in the foreign exchange market while ensuring stability in exchange rates.

Analysts interpret this intervention as part of the CBN’s broader initiatives aimed at regulating currency fluctuations and fostering confidence in the Nigerian economy.