CBN Sets Exchange Rate at N1101/$ for Dollar Sales to Bureau De Change

The Central Bank of Nigeria (CBN) has announced the resumption of dollar sales to Bureau De Change (BDC) operators at a fixed rate.

According to a circular released by the apex bank and uploaded to its website on Monday, each BDC is set to receive $10,000 at the rate of N1101 per dollar.

This move comes amidst concerns over exchange rate stability and follows previous efforts by the CBN to ensure liquidity in the foreign exchange market.

The directive also mandates BDC operators to sell the dollars purchased at a spread not exceeding 1.5 percent above the CBN’s stipulated rate.

The decision by the CBN to set a fixed exchange rate for dollar sales to BDCs aims to curb speculative activities and promote transparency in the forex market.

By establishing a clear rate, the central bank seeks to mitigate fluctuations in the exchange rate and enhance confidence among market participants.

Over the past months, Nigeria has witnessed fluctuations in its exchange rate, partly due to external factors such as fluctuations in global oil prices and domestic issues like inflation and demand for foreign currency.

The CBN’s intervention is seen as a proactive step to maintain stability in the forex market amidst these challenges.

This move is expected to provide BDC operators with access to forex at a reasonable rate, thereby enabling them to meet the demands of customers for foreign currency.

Also, it is anticipated to reduce the prevalence of parallel market transactions, which often occur at higher rates and contribute to currency speculation.

The CBN’s decision to resume dollar sales to BDCs at a fixed rate reflects its commitment to implementing measures that promote exchange rate stability and economic growth.

However, some analysts have raised concerns about the potential impact of this policy on inflation and the overall economy.

Despite the potential challenges, the CBN remains optimistic about the effectiveness of its intervention in the forex market. As the country navigates through economic uncertainties, the central bank continues to explore strategies aimed at fostering a conducive environment for sustainable growth and development.