ABUJA, Nigeria — The Central Bank of Nigeria (CBN) excluded Bureau De Change (BDC) operators from its latest tranche of foreign exchange (forex) sales to authorized dealers, as disclosed by the President of the Association of Bureau De Change Operators of Nigeria, Aminu Gwadebe, in an interview with The PUNCH.

Gwadebe confirmed that only banks received the forex intervention, stating, “No, it is their usual intervention at the NAFEM window which presently excludes the BDCs but only banks.”

The CBN commenced sales of forex worth $122.67 million to 46 approved dealers in a significant move to stabilize the foreign exchange market. Traditionally, authorized dealers include both banks and BDC operators.

In a statement signed by the CBN Director of Financial Markets, Dr. Omolara Duke, the bank emphasized its commitment to promoting stability and reducing market volatility in the forex market. The statement read, “The Central Bank of Nigeria has sold the sum of $122,671,000 to 46 authorized dealers in its determination to promote stability and reduce market volatility in the foreign exchange market.”

Last month, Gwadebe revealed that the CBN had suspended supply to BDCs since March, indicating a shift towards a fully liberalized foreign currency market that wouldn’t require the bank’s intervention. “The BDC window has been suspended by the Central Bank of Nigeria since around March or so. The last time we were funded I think was around March,” Gwadebe noted.

This exclusion of BDC operators from forex sales led to a further depreciation of the naira, which fell to N1554/$ at the official market on Thursday.

Despite these developments, Nigeria’s external reserves saw an increase, reaching $35.05 billion as of July 8, 2024, marking the first time it crossed the $35 billion mark under President Bola Tinubu’s administration.

In the recent forex sales, the CBN sold $67.5 million to 27 authorized dealers on Wednesday, while purchasing $2.5 million from one dealer. The bid range for these transactions was between N1,480/$1 and N1,500/$1, with payments scheduled for July 12, 2024. On Thursday, the CBN sold $55.17 million to 19 authorized dealers at a rate of N1,540.0/$1, with payments due on July 15, 2024.

The CBN reiterated that all authorized dealers must ensure forex purchases from the bank are exclusively used for trade-backed transactions, which must be reported within 72 hours. The bank aims to improve liquidity by supplying forex to the market through FX spot sales to authorized dealers using two-way quotes.