The Central Bank of Nigeria (CBN) has approved the sale of $20,000 to eligible Bureau De Change (BDC) operators at an exchange rate of N1,580 per dollar. This move is part of the CBN’s efforts to stabilize the foreign exchange market and address the ongoing dollar scarcity that has affected the Nigerian economy. By providing more foreign exchange liquidity to BDCs, the CBN aims to curb the rising demand for dollars in the parallel market and reduce the pressure on the Naira.
This initiative is expected to help narrow the gap between the official and black market exchange rates, offering more transparent and accessible foreign exchange options for individuals and businesses. Eligible BDC operators are required to adhere strictly to CBN guidelines and utilize the allocated funds to meet genuine demands, such as travel allowances, medical expenses, and educational fees.
However, the approval comes with stringent monitoring to prevent potential abuses, ensuring the allocation is used effectively to support the foreign exchange market. While the decision has been welcomed by many as a step toward stabilizing the economy, there are concerns about the sustainability of this intervention and its impact on the broader market dynamics in the long term.
