The Nigerian Central Bank has started selling dollars to bureau de change operators again. This was revealed in a circular signed by Dr. Hassan Mahmud, Director of the Trade and Exchange Department, and referred to as TEM/FEM/PUB/001/013 that was posted on the company’s website on Tuesday.
The top bank instructed the operators to sell at a spread of no more than 1.5% over the CBN rate and stated that it is prepared to offer $10,000 to BDCs at N1,021 per dollar.
Prior to this, the apex bank instructed the BDCs to sell to qualified clients at a rate not to exceed 1.5% over the purchase price after selling $10,000 to them at a rate of N1101/$.
There has been a 7.27% decrease in price from the prior rate. This particular current release is hoped to further strengthen the local currency.
Bizwatch Nigeria reported on Monday that the Naira depreciated against the United States Dollar reaching an exchange rate of N1,234 at the official foreign exchange market. This represents a decline of N65 or approximately 5.26 per cent from the previous rate of N1,169.99/$1 recorded on Friday. The fluctuation in exchange rates can have significant implications for trade and economic stability.
The statement read, “We write to inform you of the sale of $10,000 by the CBN to BDCs at the rate of 1,021/$. The BDCs are in turn to sell to eligible end users at a spread not more than 1.5 per cent of the purchase price.”
This recent move follows the CBN’s resolve to continue to defend the naira as stated by the bank earlier.
The CBN directed all eligible BDCs to commence payment of naira deposit into the designated CBN accounts from April 22, 2024. It also asked the operators to submit proof of payment and other documents at the appropriate CBN branches for disbursement.
As the CBN continues to defend the naira, the latest data on its website showed that Nigeria’s foreign exchange experienced a sharp decline. Nigeria’s foreign exchange reserves have experienced a one-month dip streak.
According to the latest data from the Central Bank of Nigeria, the external reserves reached a new low of $32.1bn on April 18, 2024, over 31 days, the reserves decreased by $2.35bn, falling from $34.45bn on March 18, 2024
However, during the International Monetary Fund/World Bank Spring Meetings, the CBN governor Olayemi Cardoso clarified that the bank would avoid intervening in the exchange unless unusual circumstances arose. He emphasised that the recent slight shift in reserves was unrelated to defending the naira.
The governor stated, “I want to make this as clear as possible, it is not in our intention to defend the naira. and as much I have read in the recent few days, some opinions concerning what is happening with our reserves and if the central bank is defending the naira.”
