In an Effort to Bolster the Naira, CBN Plans to Restart Weekly Foreign Exchange Interventions via BDCs
The Central Bank of Nigeria (CBN) is reportedly set to resume its weekly interventions in the foreign exchange (FX) market through Bureau de Change (BDC) operators as a significant move to enhance financial stability and bolster the naira.
The upcoming intervention, scheduled to start today with funding and continue on Tuesday with collection, aims to support the subsector by injecting foreign exchange, with the goal of stabilizing the naira’s value against major currencies, such as the US Dollar.
The collection of funds will take place at selected CBN branches in Lagos, Abuja, Kano, and Awka. Additionally, information regarding the specific naira accounts for funding bids will also be disclosed today.
CBN is anticipated to release the roster of qualified BDCs that will receive funding based on specific compliance standards.
The National Executive Council of the Association of Bureau De Change Operators of Nigeria (ABCON) discreetly provided its members with updates through a memo sent out over the weekend.
The association has informed its members that with the implementation of the central bank’s new supervisory regime, they should be prepared for a significant change in how business is conducted. Any breaches or violations will lead to immediate license revocation and legal action.
Through its involvement in various activities with the central bank and in collaboration with strategic partners, ABCON has successfully secured an agreement with the CBN to inject liquidity into the market on a weekly basis starting today under the bank’s supervision.
