In order to correct the distortions in the retail segment of Nigeria’s foreign exchange market, the Central Bank of Nigeria (CBN) has pumped some money into the system.
Dr Hassan Mahmud, the Director of Trade and Exchange Department of the Apex bank said it pumped $20,000 to each eligible Bureau De Change (BDC) operator across the country.
This initiative is part of the broader efforts to achieve a market-driven exchange rate for the Naira and alleviate the pressures feeding into the parallel market.
This allocation will be sold at a rate of N1,301/$, reflecting the lower band rate of executed spot transactions at the Nigerian Autonomous Foreign Exchange Market (NAFEM) as of the previous trading day, dated February 27, 2024.
This strategy is anticipated to inject much-needed liquidity into the market and stabilise the Naira’s value.
