The Central Bank of Nigeria (CBN) has granted eligible Bureau de Change (BDC) operators temporary access to the Nigerian Autonomous Foreign Exchange Market (NAFEM) to purchase up to $25,000 weekly. This measure, aimed at addressing increased foreign exchange (FX) demand during the festive season, will be effective from December 19, 2024, to January 30, 2025.
According to a statement issued by the apex bank, the arrangement allows all existing BDCs to access FX from authorized dealers, subject to the weekly cap. Operators must fully fund their accounts before accessing the market, with transactions conducted at prevailing NAFEM rates.
Transaction Limits: Weekly purchases are capped at $25,000 per BDC.
Authorized Dealers: Each BDC can transact with only one authorized dealer.
Retail Pricing: A maximum price spread of 1% is allowed for retail pricing by BDCs.
Reporting: All transactions must be reported to the CBN’s Trade and Exchange Department.
The CBN emphasized that personal travel allowance (PTA) and business travel allowance (BTA) remain available through banks for legitimate travel purposes. Additionally, all FX transactions must adhere to market-determined exchange rates.
“The CBN remains committed to a fully functional foreign exchange market and will continue to provide liquidity when necessary to manage price volatility,” the statement read.
In September 2024, the CBN approved FX sales to eligible BDC operators at a rate of ₦1,590 per dollar, targeting demand for invisible transactions. The ongoing initiatives underscore the bank’s efforts to stabilize the FX market and ensure sufficient liquidity.
The statement, signed by T.G. Allu, the CBN’s acting director of trade and exchange, clarified that BDC operators are to source FX exclusively from authorized dealers—licensed banks under the CBN’s regulation—to meet retail market needs.
The temporary access to NAFEM is expected to ease FX pressures during the festive period and enhance market efficiency.
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