The weekly dollar sale to bureau de change (BDCs) operators has been increased to $40,000 by the Central Bank. This represents a 100 per cent increase and takes effect this Tuesday.
The central bank also revealed that there was a 65 per cent decline in the demand for foreign exchange by commercial banks fell by during the foreign exchange auction it held last.
Nevertheless the naira depreciated further in the parallel market yesterday as the exchange rate went up from N407 on Wednesday to N410 per dollar on Thursday.
This was attributed to an increase in the demand for dollars.
The President, Association of Bureau De Change Operators of Nigeria (ABCON) confirmed to journalists the increased dollar sale to BDCs. “The CBN has increased dollar supply to each BDC. From next week, the CBN will sell $20,000 to each BDC twice every week.”
The Acting Director, Corporate Communications Department of the Central Bank also confirmed the decline in dollar demand by banks. The Acting Director Mr. Isaac Okoroafor disclosed that the commercial banks procured only $45 million out of the $100 million on offer by the CBN on wholesale spot.
He stated that the injections made by the Bank in the course of the week were meant to provide access to all stakeholders that have genuine needs for foreign exchange. “The CBN remains upbeat that the forex market will remain liquid and that Nigerians who genuinely require the forex will get ample access to the currency,” the Acting director stated.
The Central Bank of Nigeria had earlier established special interventions in the Bureau de Change Sector of the foreign exchange market.
This special intervention was also followed up with the opening of a new window for Small Scale and Medium Enterprises.
These special interventions are not included in the over $500 million dollars offered to dealers in the wholesale and retail sectors over the past week.
The new window for Small and Medium Scale Enterprise offers a unique opportunity for importers under the category to access foreign exchange.
This will enable them enhance their individual business through the importation of eligible finished and semi-finished goods not exceeding $20,000 for one Business.