The Central Bank of Nigeria (CBN) has commenced the sale of foreign exchange (forex) to eligible Bureau De Change (BDC) operators at the rate of N125.1 per US dollar. This move aims to stabilize the forex market and enhance liquidity in the Nigerian economy.
The decision by the CBN follows efforts to address forex scarcity and support economic recovery amidst global uncertainties. The new exchange rate is expected to provide relief to businesses and individuals grappling with forex challenges, particularly importers and travelers.
The CBN’s intervention is part of ongoing efforts to maintain exchange rate stability and curb speculative activities in the forex market. By supplying forex to BDCs at a favorable rate, the central bank seeks to narrow the gap between the official and parallel market rates, which have often diverged significantly.
The initiative is also intended to bolster investor confidence and attract foreign investment inflows into the Nigerian economy. A stable and predictable forex market is crucial for sustaining economic growth and attracting capital from international markets.
The CBN’s intervention comes amid persistent pressure on the naira and concerns over the country’s external reserves. By supplying forex to BDCs at a fixed rate, the central bank aims to ease demand pressures and reduce the incidence of hoarding and speculation.
The announcement of the new forex rate has been welcomed by stakeholders, including businesses, investors, and financial market participants. However, some analysts caution that sustained efforts are needed to address structural imbalances and enhance forex supply sustainability.
As Nigeria navigates economic challenges and seeks to rebound from the impact of the global pandemic, effective forex management remains a critical priority. The CBN’s proactive measures are aimed at promoting exchange rate stability and supporting sustainable economic growth in the long term.
Despite prevailing challenges, stakeholders are hopeful that concerted efforts by monetary authorities and government agencies will yield positive outcomes and pave the way for a more resilient and prosperous economy.
Source: Tribune
