CBN Bolsters Forex Liquidity: Resumes BDC Sales as Reserves Hit $47 Billion

The Central Bank of Nigeria (CBN) has announced significant measures to improve dollar liquidity in the retail sector, approving the re-entry of licensed Bureau De Change (BDC) operators into the official Nigerian Foreign Exchange Market (NFEM). This policy shift aims to narrow the arbitrage gap and stabilize the Naira (NGN) amidst ongoing volatility.

Strategic Liquidity Injection

Under the new guidelines, the CBN will allow compliant BDCs to purchase up to $150,000 weekly. This marks a decisive step to ease pressure on the parallel market, ensuring that retail demand for foreign exchange is met through regulated channels.

Macro Fundamentals Strengthen

• Gross External Reserves: $47.025 billion
• Weekly BDC Purchase Limit: $150,000
• Historical Peak: Highest level since 2018

Analyst Outlook

This reserves milestone, exceeding the $47 billion threshold, provides the CBN with the necessary firepower to defend the Naira in the medium term. Market participants view the resumption of BDC sales as a signal of active volatility management.