The Central Bank of Nigeria (CBN) has temporarily allowed Bureau de Change (BDC) operators to purchase up to $25,000 weekly from the Nigerian Foreign Exchange Market (NFEM) to meet increased seasonal demand during the festive period.
This directive, detailed in a circular dated December 19, 2024, and signed by T.G. Allu on behalf of the acting Director of the Trade and Exchange Department, is effective from December 19, 2024, to January 30, 2025. It permits BDCs to source forex from a single authorized dealer, provided their accounts are fully funded before accessing the market.
Transactions will be conducted at the prevailing NFEM rate, with BDCs required to maintain a maximum 1% spread when pricing forex for retail customers. Additionally, all transactions under this scheme must be reported to the CBN’s Trade and Exchange Department.
The circular stated:
“To meet expected seasonal demand for foreign exchange, the CBN is allowing temporary access for all existing BDCs to the NFEM for the purchase of FX from authorized dealers, subject to a weekly cap of $25,000. This window will be open between December 19, 2024, to January 30, 2025.”
The CBN emphasized that Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) remain accessible through banks at market-determined rates for legitimate travel and business needs, ensuring a functional and liquid forex market while managing price volatility.
This move follows revised guidelines issued last month, which for the first time in years permitted licensed BDCs to purchase forex directly from authorized dealers under a monthly cap set by the CBN.
Meanwhile, the naira showed modest gains in the NFEM, appreciating to N1,540/$ on Thursday from the previous day’s rate of N1,545/$. However, it remained relatively stable at N1,660/$ in the black market.
