CBN’s New Dollar Limit Expected to Strengthen Naira Stability

Nigeria’s Central Bank has introduced a policy aimed at improving foreign exchange availability and boosting the naira. Licensed Bureau de Change (BDC) operators can now buy up to $150,000 in foreign currency each week from authorised dealer banks in the official market.

The measure is intended to increase dollar supply for individuals and businesses who need foreign currency for travel, education, and medical expenses, helping to meet legitimate demand.

To ensure effectiveness, the Central Bank has implemented strict guidelines, including mandatory customer verification and electronic reporting for all licensed BDCs. Any unused foreign exchange must be returned to the market within 24 hours to prevent hoarding.

Analysts say the increased dollar flow into the official market could ease pressure on the naira and reduce the gap between official and parallel market rates, addressing a longstanding challenge for currency stability.