Bureau de Change (BDC) traders have started selling the US dollar below N1,500 at the parallel foreign exchange market, also known as the black market.
This development comes as the Central Bank of Nigeria’s Monetary Policy Committee (MPC) meets today, Monday, May 20, and Tuesday, May 21, to devise ways to help the naira in the foreign exchange market and tame inflation.
BDC traders who spoke to TimesNow.com.ng said that the dollar now sells in the black market at N1,460 on Monday, May 20, 2024.
The latest rate represents N60 improvement for the naira compared to Friday’s closing exchange rate of N1,520/$1.
Abudullahi, a BDC trader, told TimesNow.com.ng:
In recent weeks, the CBN, in collaboration with security agencies, has implemented various measures to curb the naira’s depreciation, including tightening regulations on foreign exchange transactions and cracking down on illegal currency dealers.
However, Nigeria’s economic challenges, such as high inflation, strong importation demand and weak oil production, remain potential threats to the naira’s stability.
The CBN’s monetary policy meeting outcome will further provide direction for the naira in the weeks ahead.
Earlier, TimesNow.com.ng reported that the CBN conducted another round of dollar sales to licensed Bureau De Change Operators.
The latest sale is part of the apex bank’s plan to ensure enough liquidity in the market and halt the naira’s fall.
The CBN has also fixed an exchange rate limit for the BDCs when selling to Nigerians seeking dollars.
Proofreading by James Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
