In a move aimed at stabilizing the foreign exchange market, the Central Bank of Nigeria (CBN) has extended its $25,000 weekly forex sales to Bureau De Change (BDC) operators until May 30, 2025. This extension is part of the CBN’s ongoing efforts to address forex supply shortages and improve liquidity within the market, ensuring that both businesses and individuals have access to foreign currency.
The CBN had initially implemented this forex sale initiative in 2022 to support BDCs, which are crucial players in the retail forex market. This extension is a continuation of the CBN’s strategy to stabilize the naira and manage the increasing demand for foreign currency. The weekly sale is expected to ease the pressure on the parallel market, which often leads to the depreciation of the naira.
According to a statement from the CBN, BDC operators will continue to access the $25,000 per week as part of the official market, which is aimed at ensuring transparency in the forex market and curbing the wide disparity between official and parallel market rates. The apex bank also urged BDCs to adhere strictly to guidelines and ensure that the forex is sold at the approved rates to the public.
This move by the CBN is also seen as a response to the ongoing economic challenges in the country, particularly the rising demand for foreign currency for imports, education, travel, and medical purposes. By supplying forex directly to BDCs, the CBN hopes to mitigate the impact of speculative trading and illegal forex activities that contribute to the instability in the market.
As Nigeria continues to face economic difficulties, the CBN’s extended support for BDCs is viewed as a positive step toward enhancing forex access, stabilizing the naira, and creating a more predictable market for foreign exchange transactions.
