UPDATED: CBN maintains dollar sales to BDCs at N1,101/$1

The Nation Newspaper UPDATED: CBN maintains dollar sales to BDCs at N1,101/$1

The CBN, in a letter to the President of the Association of Bureau De Change Operators of Nigeria , outlined the details of the latest intervention.

The CBN also instructed all eligible BDCs to commence immediate payment of the Naira equivalent for their dollar allocation. The CBN has emphasised the importance of BDCs adhering to all previously established rules and regulations outlined in prior CBN communications. The official stated: “The CBN will closely monitor the impact of these interventions and adjust its strategy as needed to achieve the objectives of price stability and improved FX accessibility.”

“This could distort the true value of the Naira. By supplying dollars at a set rate, the CBN might be hindering the natural process of market discovery, where the exchange rate is determined by the interaction of buyers and sellers”. In the alternative, he is proposing the CBN “allows for a more flexible exchange rate determined by market forces could incentivize efficiency and discourage speculation. Addressing underlying issues that contribute to FX demand, such as dependence on imported goods and high domestic inflation, could be a more sustainable long-term solution.

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