On Tuesday, in what seems like a string of trial and error policies, the Central Bank of Nigeria mandated commercial banks to increase the sale of foreign currencies to Bureau De Change (BDC) operators from $30,000 daily to $50,000. This was made known at the Bankers Committee Meeting held in the nation’s capital, Abuja.

The reintroduction of the sale of forex to BDCs by commercial banks, two weeks ago, was initially stopped by the CBN in January. During the time, the CBN said it stopped commercial banks from selling foreign currency due to limited foreign exchange in the country and this saw the Naira fall to an all-time low of N300/$. The CBN also mandated the BDCs to source for money from the autonomous market, which wasn’t defined at the time.

Nigeria, which is dependent on oil for about 75 percent of its revenue and 90 percent of foreign earnings, has been hit drastically by the fall in oil price as well as China’s economic slowdown. In a bid to save the Naira, the Central Bank put in several stringent currency restrictions, which have had a significant impact on the country’s economy.

According to Kennedy Uzoka, the Managing Director of UBA who spoke to journalists after the meeting, the CBN decided to increase the weekly sale of dollars to BDCs in order to drive down the price of acquiring foreign exchange. He further stated that this decision was made due to the plight of parents who needed foreign currency to pay the school fees of their children as well as to meet the demand of those travelling abroad for business or personal trips.

However, the bankers committee said that the decision was not a reversal of the previous one, but a review, as part of the efforts to help the country find solutions to the current FOREX supply crisis.

The apex bank has been trying to save the country from the foreign exchange crisis that was caused by bad monetary policies put in place by the banks, since President Buhari assumed office. These policies have also failed to give the desired effect of saving the Naira as demand continues to outweigh supply.

The question that begs to be answered now is whether or not this recent move by the CBN will improve the FOREX situation in the country. Should parents be happy that they can get access to foreign currency? Will the availability of foreign currency affect the rate at which the currency will be sold?