CBN Injects Liquidity into FX Market, Sells Dollars to BDCs at N1,580/$

The Central Bank of Nigeria (CBN) has approved the sale of dollars to bureau de change (BDC) operators at a rate of N1,580 per dollar.

This directive was outlined in a circular signed by W.J Kanya, the acting director of the trade and exchange department, on September 6, 2024.

According to the circular, each BDC operator is eligible to purchase up to $20,000 in foreign exchange. The CBN has stipulated that all BDCs are permitted to sell FX to eligible end-users at a margin not exceeding 1 percent above the purchase rate set by the CBN.

This measure is intended to provide more liquidity in the market and meet the demand for invisible transactions. "This is to inform the Bureau De Change (BDC) Operators and the general public that we are providing more liquidity into the market," the circular stated. "To this end, the CBN has approved the sale of US$20,000.00 to each eligible BDC at the rate of N1,580/$.

This is to meet the demand for invisible transactions." The CBN also instructed interested and eligible BDCs to make their naira payments to the CBN deposit account numbers assigned to them. Payment confirmation and all necessary documentation for disbursement are to be submitted at the appropriate CBN branches in Abuja, Awka, Kano, and Lagos for collection of the $20,000.

This move by the CBN is seen as an effort to regulate the FX market and ensure that BDCs operate within set financial parameters, potentially impacting currency stability and the broader Nigerian economy. However, reactions from the public have been mixed, with some expressing skepticism about the effectiveness of this measure in addressing the underlying issues affecting the Nigerian economy. "If they like let them sell it for 2000, it won't change the fact that they are clueless on how to run an economy," commented one anonymous user.

Another added, "Combination of Cardoso and Edun making Nigerians hungry."