The Central Bank of Nigeria (CBN) has temporarily authorized Bureau de Change (BDC) operators to purchase up to $25,000 weekly from the Nigerian Foreign Exchange Market (NFEM), which was recently launched. This arrangement is set to run from December 19, 2024, to January 30, 2025.
In a circular dated December 19, 2024, signed by T.G. Allu on behalf of the acting Director of the Trade and Exchange Department, the CBN stated that the initiative is aimed at addressing seasonal retail demand for foreign exchange during the holiday period.
The circular specified that all transactions would occur at the prevailing NFEM rate, with BDC operators required to maintain a maximum spread of 1% when selling forex to retail end-users.
DOLLARS
“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 authorised dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only),” the circular stated. “This window will be open between December 19, 2024, and January 30, 2025.
“BDC operators can purchase FX under this arrangement from only one authorised dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange Department, and a maximum spread of 1 per cent is allowed on the pricing offered by BDCs to retail end-users.”
The CBN also emphasized that Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) remain accessible through banks for legitimate travel and business purposes. These transactions will be conducted at market-determined exchange rates under the NFEM framework.
The apex bank reaffirmed its commitment to ensuring a functional and liquid foreign exchange market while mitigating price volatility during this period.
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