The Central Bank of Nigeria (CBN) has resumed its foreign exchange (forex) sales to Bureau De Change (BDC) operators after a four-month pause, distributing $122.67 million to 46 authorized dealers. This move aims to stabilize the forex market and reduce volatility.
A statement issued by Dr. Omolara Duke, the Director of Financial Markets at the CBN, confirmed the forex disbursement. The statement emphasized the bank’s commitment to maintaining market stability and curbing fluctuations.
“The Central Bank of Nigeria has sold the sum of $122,671,000 to 46 authorized dealers in its determination to promote stability and reduce market volatility in the foreign exchange market,” the statement read.
Last month, Aminu Gwadebe, President of the Association of Bureau De Change Operators of Nigeria, disclosed that the CBN had halted forex supply to BDCs since March. The bank was reportedly moving towards a fully liberalized foreign currency market, minimizing the need for its intervention.
Related newsNo Plans to Revoke Licenses of Fidelity, Wema, Polaris, and Unity Banks – CBNÂ
No Plans to Revoke Licenses of Fidelity, Wema, Polaris, and Unity Banks – CBNÂ
“The BDC window has been suspended by the Central Bank of Nigeria since around March. The last time we were funded was around March,” Gwadebe said.
During the suspension, the naira’s value fell to N1554/$ at the official market. The resumption of forex sales is expected to bolster the naira and provide some relief to the market.
Earlier this week, Nigeria’s external reserves saw a significant increase, reaching $35.05 billion as of July 8, 2024. This marks the first time reserves have crossed the $35 billion threshold under President Bola Tinubu’s administration.
