The Central Bank of Nigeria (CBN) has approved the daily allocation of $10,000 to 1,588 eligible Bureau De Change (BDC) operators. This decision, communicated by W.J Kanya, Director of the Trade and Exchange Department at the CBN, signifies a significant shift in the currency exchange dynamics within the country.
According to the directive outlined in a letter addressed to the President of the Association of Bureau De Change Operators (ABCON) on Monday in Abuja, BDC operators will access these funds at an exchange rate of N1,101 per dollar. This move comes amidst calls for intervention to alleviate pressure on the Naira and stabilize the currency’s value in the face of economic uncertainties.
The letter further mandates that BDCs sell the allocated dollars to eligible end users, maintaining a spread of not more than 1.5 percent above the purchase price. Moreover, all eligible BDCs are instructed to initiate Naira deposits into the designated CBN Naira deposit account starting from Monday to facilitate compliance with the new regulations.
The CBN’s decision follows recent appeals by Aminu Gwadabe, President of ABCON, urging the apex bank to reconsider its applicable exchange rate, currently set at N1,251 to the dollar for BDCs. Gwadabe highlighted the growing financial strain faced by BDCs, particularly as the parallel market rate of N1,235 to the dollar emerged lower than the official rate.
This development underscores the ongoing efforts by regulatory authorities to navigate challenges within Nigeria’s foreign exchange market and ensure stability amidst fluctuating economic conditions. As BDCs adapt to the new exchange rate guidelines, market observers closely monitor the impact on currency dynamics and the broader financial landscape.
Credit: News Agency of Nigeria (NAN) Text Excluding Headline
