Nigerian Naira Rises in FX Markets After CBN Allows BDC Operators to Participate

The Nigerian Naira has strengthened in the foreign exchange markets, with a new exchange rate quoted by traders. This appreciation follows the Central Bank of Nigeria's decision to permit licensed Bureau De Change (BDC) operators to participate in the Nigerian Foreign Exchange Market (NFEM).

The Naira appreciated to N348.95 per US dollar on Wednesday, gaining N2.07 from the previous day. The BDC operators were authorized to purchase $150,000 weekly in the NFEM, with strict reporting and transparency requirements set by the CBN.

Market analysts and industry players, including Musa Nakorji from the CBN, Aminu Gwadabe from ABCON, and Tunde Amolegbe from Arthur Steven Asset Management, have reacted positively to the move, seeing it as a step to strengthen the domestic currency. Ayotund Olubunmi from Agusto & Co described the development as part of broader efforts by the CBN to reduce distortions in the forex market and bridge the gap between official and parallel exchange rates.