BDC Ban Sees Headway As FX Demand Migrates To DMBs – CBN
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Adamu stated that the rapid depreciation seen in the black market has slowed.
“The initial panic-driven depreciation on the parallel market ( Black Market) has gradually given way to real market forces,” he explained.
He also claimed that the BDC Ban by CBN has successfully shifted FX demand to the DMBs.
“The revised FX management strategy, which excludes BDCs from direct sales, appears to be working, as a significant portion of FX demand has migrated to the DMB’s window.” “We can expect this pattern to continue in the coming months as trust in the revised framework grows,” he said.
“Overall, I concluded that the primary goal of policy at this point would be to preserve and possibly deepen the relative stability that the economy has begun to record,” he added. In my opinion, the current monetary policy configuration remains relevant.”
He also stated that, despite the positive results on inflation and growth thus far, the economy has yet to reach pre-pandemic levels on several fronts. Employment, for example, remains a major policy concern.