The Central Bank of Nigeria (CBN) has extended the dollar access of Bureaux de Change’s by four months, amid improved local liquidity that has contributed to recent naira gains.
Bureaux de change have been allowed to buy as much as $25,000 a week on the official currency market since December, delivering a boost to supply that has helped the naira advance 3% to 1,498.5 per dollar from 1,549 when the program started on Dec. 19.
The program “has been extended to May 30,” from the original date of Jan. 31, the Central bank of Nigeria said in statement. “CBN remains committed to a fully functional foreign exchange market and will continue to provide liquidity when necessary to manage price volatility,” it said.
“The initial decision to allow BDCs to participate in the official market as well as increased foreign portfolio inflows has supported the appreciation,” BancTrust & Co. said in emailed note. “Increased liquidity in the official market has boosted the relevance of the market in determining pricing,” it said.
The naira has stabilized since early December thanks to improved local liquidity and various measures by the CBN to provide support.
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