Nigeria’s Central Bank Sold $110 Million in Foreign Currencies to Bureau De Change Operators
The Central Bank of Nigeria (CBN) has released $110.81 million in foreign currencies to licensed Bureau De Change (BDC) operators from February to July 18, 2024. The move is part of efforts to defend the Nigerian Naira against other foreign currencies in the foreign exchange market.
According to CBN circulars, the bank has sold foreign currencies to BDCs on multiple occasions this year. The latest sale took place on Thursday, where $20,000 was allocated to each BDC at an exchange rate of N1450 per dollar.
In February, the CBN resumed the sale of foreign currencies to BDCs, releasing an estimated $31.66 million to an estimated 1,583 operators. The following month, March 2024, saw the CBN approve the release of another tranche at an N1251 per dollar rate, expected to amount to $15.83 million.
The bank’s efforts to strengthen the Naira did not slow down in April, when it sold foreign currencies to BDCs twice, with an estimated total spend of $31.66 million.
As the Naira continues to fluctuate in both the black and official foreign exchange markets, with rates of N1565 and N1566.92 on Thursday, the CBN’s sales to BDCs are a key indicator of the bank’s strategy to stabilize the Naira.
These transactions, made possible through CBN circulars, demonstrate the bank’s commitment to defending the Nigerian currency and promoting financial stability in the country.
