THE Central Bank of Nigeria (CBN) has resumed fresh dollar sales to Bureau De Change (BDCs) at N1, 021/$, to stabilise the currency market.
Nigeria’s apex bank disclosed this on Tuesday, April 24, in a circular signed by its Director of Trade and Exchange Department, Hassan Mahmud.
“We write to inform you of the sale of $10,000 by the Central Bank of Nigeria (CBN) to BDCs at the rate of N1,021/$1. The BDCs are, in turn, to sell to eligible end users at a spread of not more than 1.5 per cent above the purchase price,” the circular posted on its website read.
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It added, “All eligible BDCs are therefore directed to commence payment of the naira deposit to the under-listed CBN naira deposit account numbers from today, Monday, April 22, 2024, and submit confirmation of payment, with other necessary documentation, for disbursement of FX at the respective CBN Branches.”
CBN’s move is coming as the naira is recording a slight depreciation against the dollar after weeks of gains.
In late March, the bank also sold $10,000 to each of the eligible Bureau De Change (BDC) operators in the country at the rate of N1,251/$1.
Like in the most recent sales, it warned BDCs against breaching terms of the dollar sales, vowing to sanction defaulters “including outright suspension from further participation in the sale”.
The fortunes of the naira have fallen sharply since President Bola Tinubu took over in May, 2023.
Inflation figures have reached new highs, and living costs are hitting the rooftops.
Before the naira’s slight depreciation, the appreciation recorded by the naira against the greenback on the parallel market marked the first time the naira reached this level since September 26, 2023.
However, the daily foreign exchange (FX) turnover declined by 10.57 per cent, reaching $251.60 million on Monday, April 15, compared to the $281.34 million recorded on Friday, April 19.
Furthermore, the highest spot rate observed on Monday stood at N1,227, with the lowest spot rate recorded at N1,000.
Checks at the official National Autonomous Foreign Exchange Market (NAFEM) official window showed the dollar closing sales on Tuesday, April 23, at N1300.15/$l, an indication that the CBN is still selling at a lower rate to the BDCs to control the market and ward off speculators.
Nigeria’s currency slid to about N1,900/$ some months ago at the parallel market. But in recent weeks, it has gained against the dollar.
The Nigerian authorities have also doubled their crackdown against cryptocurrency platform Binance and illegal BDCs to strengthen the naira.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.