The Central Bank of Nigeria extends forex purchase deadline for Bureau de Change (BDC) operators to acquire foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM) to May 30, 2025.
Initially, in December 2024, the CBN had granted BDCs temporary permission to purchase up to $25,000 weekly from the NFEM between December 19, 2024, and January 30, 2025, aiming to meet the heightened FX demand during the festive season.
In a recent circular, the CBN extended this access period while maintaining all other terms of the previous directive. BDC operators are permitted to purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.
Transactions must be conducted at the prevailing NFEM rate, with operators required to maintain a maximum 1% spread when pricing FX for retail customers.
To ensure transparency and regulatory compliance, all transactions under this framework must be reported to the CBN’s Trade and Exchange Department.
The CBN also reassured the public that Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) remain accessible through banks for legitimate travel and business purposes, conducted at market-determined exchange rates within the NFEM framework.
This directive underscores the CBN’s commitment to a fully functional FX market, ensuring liquidity to manage price volatility.
The CBN’s decision to extend the deadline for BDC operators to purchase FX from the NFEM reflects its ongoing efforts to stabilize the foreign exchange market and meet the country’s economic needs.
By allowing BDCs to continue accessing FX, the CBN aims to ensure sufficient liquidity in the market, thereby reducing pressure on the Naira and mitigating potential volatility.
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This move is part of a broader strategy by the CBN to manage the FX market effectively. By extending the deadline, the CBN provides BDC operators with more time to meet the FX demands of their clients, particularly in light of ongoing economic challenges.
The CBN’s directive also emphasizes the importance of transparency and regulatory compliance in FX transactions. By requiring all transactions to be reported to the Trade and Exchange Department, the CBN aims to monitor the FX market closely and ensure that all activities align with its regulatory framework.
Furthermore, the CBN’s reassurance regarding the accessibility of PTA and BTA through banks highlights its commitment to supporting legitimate travel and business activities.
By conducting these transactions at market-determined exchange rates within the NFEM framework, the CBN ensures that individuals and businesses can access the FX they need for their operations.
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