CBN Denies Claims of Foreign Exchange Sale to BDC Operators
The Central Bank of Nigeria (CBN) has refuted claims of issuing a circular authorizing the sale of foreign exchange to Bureau De Change (BDC) operators at a rate of N1,300 per US dollar. The circular, which surfaced on Tuesday, December 10, 2024, falsely stated that the apex bank had sold $20,000 to each eligible BDC operator at this rate.
The purported circular, which claimed to be part of ongoing reforms in Nigeria’s foreign exchange market, suggested that the CBN was taking action to address “price distortions” in the retail segment of the market. The statement also implied that these distortions were contributing to the widening gap between official and parallel market exchange rates. However, the CBN was quick to dismiss the document as a fabrication.
On Wednesday, the CBN took to its official X account (formerly Twitter) to categorically declare that the circular was “fake” and that no such sale of foreign exchange had occurred. The central bank has consistently warned the public to be cautious of misleading information that could distort the foreign exchange market.
Recent Trends in the Naira-Dollar Exchange
The Naira has shown some stability in recent days, especially following the introduction of the Electronic Foreign Exchange Matching System (EFEMS) by the CBN. This new system aims to enhance transparency and efficiency in forex transactions, with the goal of achieving a market-determined exchange rate for the Naira. Over the past week, the Naira strengthened against the US Dollar in the official market, closing at N1,525 per USD on Tuesday.
Despite the official market’s gains, the Naira has faced some setbacks in the black market. In recent days, the parallel market rate for the Naira has risen, with the currency trading at N1660 per USD. This fluctuation is partly due to demand and supply imbalances in the unregulated parallel market.
CBN’s Previous Interventions
The last time the Central Bank of Nigeria intervened directly in the black market was in September 2024, when it sold foreign exchange to BDC operators at a rate of N1,590 per dollar. Since then, the CBN has focused on improving transparency and supporting the official market through initiatives like EFEMS, rather than engaging with the black market directly.
It remains crucial for Nigerians to be cautious of fake news and to rely on verified sources, such as the official statements from the CBN, for accurate information on foreign exchange policies and rates.
