The Central Bank of Nigeria (CBN) has resumed forex sales to Bureau De Change (BDC) operators after a four-month hiatus, injecting $122.67 million into the market. This move is part of the apex bank’s efforts to promote stability and reduce volatility in the foreign exchange market.
In a statement signed by the Bank’s Director in charge of Financial Markets, Dr. Omolara Duke, the CBN confirmed the sale of $122,671,000 to 46 authorized dealers. The statement highlighted the bank's commitment to stabilizing the forex market amidst ongoing economic challenges.
"The Central Bank of Nigeria has sold the sum of $122,671,000 to 46 authorized dealers in its determination to promote stability and reduce market volatility in the foreign exchange market," the statement read.
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This development comes after a period of suspension of forex supply to BDCs since March. Last month, President of the Association of Bureau De Change Operators of Nigeria, Aminu Gwadebe, indicated that the CBN was moving towards a complete liberalization of the foreign currency market, which would eventually eliminate the need for the bank's intervention.
"The BDC window has been suspended by the Central Bank of Nigeria since around March or so. The last time we were funded I think was around March," Gwadebe stated.
During this suspension, the naira depreciated further, reaching N1554/$ at the official market on Thursday. However, Nigeria's external reserves have shown signs of improvement, increasing to $35.05 billion as of July 8, 2024. This marks the first time the reserves have crossed the $35 billion threshold under President Bola Tinubu’s administration.
