The Central Bank of Nigeria (CBN) has introduced temporary measures to address heightened seasonal demand for foreign exchange during the festive period.
Bureau De Change (BDC) operators will now be granted access to the Nigerian Foreign Exchange Market (NFEM) for the purchase of up to $25,000 weekly from authorised dealers, under strict conditions, the apex bank said.
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In a circular issued on Thursday by T.G. Allu, for the bank’s Acting Director of the Trade and Exchange Department, it outlined that this window will be open from 19 December to 30 January 2025.
“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only). This window will be open between December 19, 2024 to January 30, 2025,” it said.
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BDC operators will be required to purchase FX from only one authorised dealer of their choice and must fully fund their accounts before accessing the market at prevailing NFEM rates.
The arrangement aims to provide liquidity while ensuring adherence to market-determined exchange rates.
BDCs will also be allowed a maximum spread of 1 per cent on pricing offered to retail end-users, with all transactions reported to the Trade and Exchange Department for monitoring purposes.
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The CBN reiterated its commitment to a fully functional foreign exchange market and stressed that legitimate and eligible transactions, including Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), will continue to be accessible through banks.
It also said it remains committed to a fully functional foreign exchange market and will continue to provide liquidity when necessary to manage price volatility.
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