Currencies
Naira Expected to Strengthen After CBN Raises BDC Dollar Limit
Market analysts expect the naira to gain value following the Central Bank of Nigeria’s (CBN) decision to allow licensed Bureau de Change operators to purchase up to $150,000 weekly.
The CBN announced the measure in a circular to authorised dealer banks, aimed at increasing foreign exchange availability in the retail market and meeting legitimate customer demand.
Experts said improved forex supply is likely to narrow the gap between official and parallel market rates, benefiting companies that rely on imported raw materials and machinery.
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Ayotunde Olubunmi, Head of Financial Institutions at Agusto & Co., said that widening access to foreign currency helps stabilise exchange rates by reducing speculative pressure and arbitrage opportunities. Tunde Amolegbe, CEO of Arthur Stevens Asset Management, added that a stronger naira would ease costs for manufacturers and importers.
The CBN also introduced compliance measures requiring BDCs to submit electronic returns promptly, sell back unutilised balances within 24 hours, and limit cash settlement to 25% of each transaction. Third-party transactions are prohibited, while all settlements must go through authorised financial institutions.
Analysts believe these steps, combined with expanded liquidity, will help promote transparency and stabilise the currency in the near term.
