In an unprecedented move, the Central Bank of Nigeria (CBN) has unveiled a new strategy aimed at fortifying the Naira’s position in the foreign exchange market. The latest directive from the apex bank involves the allocation of $10,000 to each Bureau De Change (BDC) operator at a competitive rate of N1,101 to the dollar.
This development is a strategic response to the surging demand for foreign currency within the retail sector, particularly for transactions that are not physically visible. The CBN’s initiative is poised to cater to this demand efficiently, ensuring that genuine transactions are facilitated with ease.
Moreover, the CBN has mandated BDC operators to adhere to a maximum sale spread of 1.5 percent above the stipulated purchase rate. This regulation is designed to curb any potential overpricing of foreign currency sales to the public, promoting a more equitable trading environment.
Reflecting the CBN’s enhanced capacity to manage foreign exchange, the adjusted rate from N1,251/$1 to N1,101/$1 signifies the bank’s solid foreign reserve status. This recalibration is expected to yield a more advantageous forex trading environment, highlighting the CBN’s dedication to maintaining transparency and regulatory compliance within the BDC sector.
With immediate effect, qualified BDCs are required to initiate the Naira deposit process into the designated CBN Naira Deposit Account Numbers. The CBN has reiterated the critical nature of complying with the established rules and conditions as communicated in prior directives, ensuring that BDC operations are in line with the apex bank’s regulatory standards.
The Association of Bureau De Change Operators of Nigeria (ABCON) had previously lobbied for a reduction in the applicable exchange rate. The CBN’s new directive seems to align with ABCON’s aspirations, marking a pivotal move towards satisfying the essential needs of their clientele.
As the CBN persists in its mission to oversee and stabilize the forex market, this latest policy serves as a testament to the bank’s proactive stance in navigating the nation’s fiscal challenges. This policy is anticipated to be embraced by both BDC operators and the general public, signaling a new era of enhanced forex availability and market equilibrium.