The Central Bank of Nigeria (CBN) grants Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 in foreign exchange (FX) weekly from the Nigerian Foreign Exchange Market (NFEM). This policy addresses increased seasonal demand for FX during the holiday period and remains in effect from December 19, 2024, to January 30, 2025.
The directive, signed by T.G. Allu on behalf of the Acting Director of the Trade and Exchange Department, allows BDCs to buy FX from a single Authorized Dealer, provided their accounts are fully funded before accessing the market. Transactions take place at the prevailing NFEM rate, and BDCs must follow a maximum 1% spread in pricing for retail customers.
All transactions under this scheme are reported to the CBN’s Trade and Exchange Department. This initiative reflects the central bank’s commitment to stabilizing the FX market and managing seasonal surges in demand.
The CBN reassures the public that Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) remain accessible through banks for legitimate travel and business purposes. All transactions occur at market-determined exchange rates within the NFEM framework.
In November 2024, the CBN updates its guidelines, enabling licensed BDCs to purchase FX directly from Authorized Dealers for the first time in years. This decision, outlined in its circular on the revised guidelines for the Nigerian Foreign Exchange Market, is part of efforts to streamline the FX market and ensure the naira reflects its true value.
Participation in this arrangement requires BDCs to meet updated capitalization and regulatory standards introduced earlier in May 2024. While this policy aims to boost liquidity and confidence, compliance with these requirements remains mandatory.
Recent Market Trends
- The naira shows stability in the official market, closing at N1,540/$, an improvement from the previous day’s rate of N1,545/$.
- In the parallel market, the naira holds steady at around N1,660/$.
- The Bloomberg BMatch trading system, introduced in December 2024, continues to enhance transparency and efficiency in the official market.
The CBN’s ongoing reforms, alongside recent Eurobond issuances, contribute to improved liquidity and confidence, supporting a more transparent and stable FX market.
 grants Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 in foreign exchange (FX) weekly from the Nigerian Foreign Exchange Market (NFEM). This policy addresses increased seasonal demand for FX during the holiday period and remains in effect from December 19, 2024, to January 30, 2025.){kind=link}