CBN Resumes Forex Sales to BDC Operators After 4-Month Suspension

The Central Bank of Nigeria (CBN) has resumed sales of foreign exchange to Bureau De Change (BDC) operators, ending a four-month suspension.

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On Friday, July 12, 2024, the apex bank sold $122.67 million to 46 authorized dealers, aiming to promote stability and reduce market volatility in the foreign exchange market.

According to a statement signed by Dr. Omolara Duke, Director of Financial Markets at CBN, “The Central Bank of Nigeria has sold the sum of $122,671,000 to 46 authorised dealers in its determination to promote stability and reduce market volatility in the foreign exchange market.”

This development comes after the President of the Association of Bureau De Change Operators of Nigeria, Aminu Gwadebe, revealed last month that the CBN had suspended supply to BDCs since March, paving the way for a complete liberalization of the foreign currency market. Gwadebe stated, “The BDC window has been suspended by the Central Bank of Nigeria since around March or so. The last time we were funded, I think was around March.”

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The hiatus in forex sales led to a further depreciation of the naira, which fell to N1554/$ at the official market on Thursday. However, Nigeria’s external reserves have continued to grow, reaching $35.05 billion as of July 8, 2024, a first under the administration of President Bola Tinubu.