The Central Bank of Nigeria (CBN) has announced plans to reinstate its weekly intervention in the foreign exchange (forex) market through Bureau de Change (BDC) operators.
The decision comes after the CBN halted forex sales to BDCs in 2021 as part of efforts to address forex scarcity and enhance the value of the naira.
However, the current move signals a strategic shift to inject liquidity into the forex market through targeted interventions.
Starting this week, the CBN will resume its weekly intervention program, which involves both funding and collection processes.
The initiative aims to supply much-needed forex to BDCs, which play a vital role in ensuring liquidity and accessibility of foreign currency to businesses and individuals across Nigeria.
Under the plan, designated CBN branches in Lagos, Abuja, Kano, and Awka will facilitate the collection of forex funds for BDCs.
Moreover, the CBN will publish a list of eligible BDCs based on specific compliance criteria, ensuring transparency and accountability in the distribution process.
The Association of Bureau De Change Operators of Nigeria (ABCON) welcomed the CBN’s decision, highlighting its potential to boost market liquidity and stabilize the naira against major currencies, particularly the US Dollar.
ABCON emphasized the need for its members to adhere strictly to regulatory guidelines, warning that any infringement or non-compliance would lead to license revocation and legal action.
The move underscores the CBN’s commitment to implementing effective monetary policies geared towards fostering economic stability and restoring confidence in the Nigerian financial system amidst prevailing challenges.