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The Central Bank of Nigeria, CBN, announced that it is reopening the sales of forex to licensed Bureau de Change operators, BDC, on September 7.
CBN will sell at N386/$1 making only $10,000 available twice a week while trying to preserve dwindling reserves. Both BDC’s, banks and authorised forex dealers can now buy foreign currency.
Nigerians travelling out for business can buy at the same rate when they present travel documents at the bank. The resumption does not include sales to foreign investors.
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Following this announcement, the black market in Nigeria took a turn on Tuesday. It reaffirmed to N420/$1 having closed at N477/$1 Friday showing that the resumption could have strengthened the Nigerian currency.
Earlier dollar shortage which was caused by the suspension of forex with orders from the CBN caused the naira to fall weekly. Devaluation left the naira at a low of N480/1$ on the black market and N381/$1 at the official market. While the oil price crash due to the pandemic and lockdowns is now recovering, the dollar shortage heightened until CBN released a circular notifying BDCs and the public of the resumption.
The CBN said the resumption is especially for travellers and would be gradual. But also the naira could gain more in the next weeks. This raises doubt that the $10,000 twice a week will help the accumulated demands of foreign curency as traders contiune to tackle shortage.
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