In a pivotal move to stabilize the financial landscape and bolster the Nigerian naira, the Central Bank of Nigeria (CBN) is set to recommence its weekly foreign exchange (FX) interventions via Bureau de Change (BDC) operators, according to reliable sources from THISDAY. This strategic decision marks a reversal from the 2021 policy, where the CBN halted FX sales to BDCs, aiming to preserve the naira’s value, ensure financial system stability, and boost external reserves.
The intervention, slated to start with funding today and FX collection on Tuesday, aims to counter the naira’s depreciation against major currencies, especially the US dollar. Collections are to occur at specified CBN branches across Lagos, Abuja, Kano, and Awka, with details on the naira accounts for funding bids also to be disclosed.
The CBN plans to release a list of BDCs eligible for this support, based on compliance with set criteria. The Association of Bureau De Change Operators of Nigeria (ABCON) communicated these updates to its members, emphasizing that strict adherence to the new regulatory framework by the CBN will be enforced, warning that any violations could lead to license revocation and legal action.
ABCON has been in continuous dialogue with the CBN, advocating for market liquidity. The central bank has agreed to ABCON’s request for a weekly FX supply under its supervision, starting today. Furthermore, the CBN has informed ABCON that the recently issued circular on Revised Regulatory and Supervisory Guidelines for BDCs is open for feedback before finalizing the guidelines, calming members’ concerns over the proposed reforms, including a significant increase in the minimum capital requirements for national and state BDCs.
