CBN plans extra FX sale to BDCs as pressure on Naira intensifies

Nigeria’s central bank will sell an additional $15,000 per week to each of the more than 4000 BDC operators as it steps up defense of the local currency which has been losing value against the dollar.

The Naira depreciated to 370 per dollar, the weakest level since August 2017, on the black market on Thursday, according to abokiFX.com, which collates rates from street-traders in Lagos, the nation’s commercial hub.

On the interbank market, the currency fell 0.7 percent to 365.73, its weakest since August 2017.

READ ALSO: Naira firms further as BDCs expect dollar disbursement Thursday

The decline comes after the price of crude oil plummeted 31 percent since early October, curbing export revenue for Africa’s biggest producer and exacerbating a shortage of dollars.

Nigeria’s also experienced bond and stock outflows this year amid the rout in emerging-market assets.00 registered foreign-exchange dealers at 357 naira, starting from Dec. 6.

Dealers can already buy $20,000 three times weekly. The aim according to the apex bank is to meet rising dollar demand from travelers ahead of the Christmas holiday season.