CBN Approves Weekly Sale of $150,000 to BDCs to Improve Foreign Exchange Access

The Central Bank of Nigeria (CBN) has announced a new policy that will allow licensed Bureau De Change (BDC) operators to buy up to $150,000 every week from banks. This decision is aimed at improving the availability of foreign exchange (FX) in the country, making it easier for businesses and consumers to access dollars.

The move is designed to improve the efficiency of the FX market and provide more access to dollars, especially for smaller businesses and individuals who rely on BDCs to exchange currency. With this policy, the CBN hopes to make the foreign exchange market more stable and reduce the problems that have come from limited access to dollars.

By allowing BDCs to buy large amounts of foreign currency directly from banks, the CBN aims to make sure that businesses, which depend on dollars for imports and international transactions, can get the money they need. This policy will also help individual consumers who use BDCs to change Naira into foreign currencies for personal needs, such as travel or online purchases.

This new plan will help reduce the difficulties people have been facing in getting dollars at a reasonable price. It will also make it harder for the black market to thrive by increasing the supply of foreign currency from official sources.

The weekly $150,000 sale will also help to ease pressure on Nigeria’s foreign exchange reserves and could help stabilize the Naira. The CBN hopes that by providing more dollars to the market, it will reduce price fluctuations and make the exchange rate more predictable.

However, the success of the policy will depend on how well BDC operators follow the rules and pass on the benefits to the market. If they do, it could lead to better foreign exchange availability and more stable rates in the future.

This step is part of the CBN’s efforts to improve the overall economy and make it easier for businesses and consumers to access foreign currency. The hope is that it will create a more stable and transparent FX market that helps both businesses and individuals in the long run.