Central Bank of Nigeria Resumes Dollar Sales to BDC Operators – Exchange Rate Plummets Below N1,400/$1!

The Central Bank of Nigeria has made a significant move by resuming the sale of $10,000 to Bureau De Change operators at a rate of N1,251/$1. This decision marks a pivotal shift after a prolonged suspension of dollar sales to BDC operators in 2021.

The ban, which was lifted in February following the revocation of licenses of over 4,173 out of 5,689 BDC operators, has now opened up new opportunities in the foreign exchange market. The circular issued instructs BDCs to sell dollars to eligible customers at a rate not exceeding 1.5% above the purchase price, indicating a cap at N1,269/$1.

Recent investigations have unveiled a fascinating development in the exchange rate landscape. The exchange rate has shown a consistent downward trend, with yesterday’s trade closing at N1,408 at the NAFEM market and dipping below N1,400/$1 in the parallel market, down from N1,431/$1 on Friday.

This shift in the exchange rate dynamics is not only significant but also opens up new possibilities for traders and investors alike. The evolving landscape presents both challenges and opportunities, making it a compelling time to closely monitor developments in the foreign exchange market.