EACH BDC RECEIVES $20,000 FROM CBN IN ORDER TO KEEP THE NAIRA STABLE.

The Central Bank of Nigeria (CBN) has made a firm decision to close the growing exchange rate difference in an effort to address the enduring distortions in the retail sector of Nigeria’s foreign exchange market.

Dr. Hassan Mahmud, the Director of Trade & Exchange Department, released a fresh circular on behalf of the CBN announcing the allocation of $20,000 to all qualified Bureau De Change (BDC) operators nationwide.

This project is a component of larger attempts to relieve pressures fueling the parallel market and establish a market-driven exchange rate for the Naira.

The price at which this allotment is sold, N1,301/$, is based on the lower band rate of spot transactions that were completed at the Nigerian Autonomous Foreign Exchange Market (NAFEM) as of February 27, 2024, the preceding trading day.

It is expected that this tactic will stabilize the value of the Naira and bring much-needed liquidity to the market.