In its continued effort at achieving appropriate market determined exchange rate for the economy, the Central Bank of Nigeria (CBN) has announced the approval of the sales of FX to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions.
CBN, in a circular signed by A. A Mahdi, Acting Director of Trade and Exchange at the CBN, noted the distortions in the retail end of the market, threatening the market.
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It noted that the sum of $20,000 is to be sold to each BDC at the rate of N1,450/$1.
Part of the memo reads:”Following the ongoing reforms in the foreign exchange market with the objective of achieving an appropriate market determined exchange rate for the naira, the Central Bank of Nigeria has observed the continued distortions in the retail end of the market which is feeding into the parallel market and further widen the exchange rate premium. To this end, the CBN has approved the sales of FX to eligible Bureau De Change to meet the demand for invisible transactions. The sum of $20,000 is to be sold to each BDC at the rate of N1,450/$, (representing the lower band of the trading rate at NAFEM in the previous trading day).
However, Metrobusimessnews.com, (MBN) checks reveal that the nation’s currency is still under pressure, exchanging between N1500-1,600/$, posing serious challenge to the apex bank’s policy measures.
