Once more, through a circular to Bureau De Change operators (BDCs), the Central Bank of Nigeria (CBN) has taken action, authorising the sale of $10,000 to each BDC at a set rate of N1,101 per dollar.
According to a circular that Nairametrics was able to receive, BDCs must sell the dollars allotted to qualified consumers at a price that does not exceed 1.5% over the purchase price. This suggests that the highest rate at which BDCs can sell the dollars is N1,117 per dollar.
The CBN’s latest action is a reflection of its strategic efforts to control the currency rate and prevent the naira from depreciating too much.
See How Much Naira Will Trade Against The Dollar, As CBN Resumes FX Sale To BDCs
The Central Bank’s designated selling rate is significantly less than the N1,251.05 per dollar rate that was seen at the close of the previous week, based on data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The CBN attempts to maintain exchange rate stability while increasing market liquidity by providing dollars to BDCs at a fixed rate.
According to analysts, the CBN’s larger efforts to control exchange rate swings and promote trust in the Nigerian economy include this involvement.
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