The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary access to purchase up to $25,000 weekly from the Nigerian Foreign Exchange Market (NFEM) to meet the seasonal retail demand for foreign exchange during the festive period.
The new measure, effective from December 19, 2024, to January 30, 2025, aims to provide relief amid rising forex needs during the holidays.
In a circular released on December 19, 2024, the CBN outlined that BDCs could buy the dollar from a single authorized dealer of their choice, provided they fully fund their accounts before engaging in any transactions.
These transactions will be conducted at the prevailing NFEM rate, with a maximum 1% spread required when pricing the forex for retail customers.
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“The scheme aims to meet expected seasonal demand for forex while ensuring liquidity in the market,” said the circular, signed by T.G. Allu, on behalf of the acting Director of the CBN’s Trade and Exchange Department.
The CBN emphasized that all forex purchases by BDCs must be reported to its Trade and Exchange Department for monitoring.
This initiative is part of the CBN’s broader effort to ensure a stable and functional foreign exchange market and mitigate volatility, particularly during high-demand periods like the holiday season.
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The central bank also reiterated that personal and business travel allowances remain available through banks, allowing for continued legitimate foreign exchange access.
Since the launch of the NFEM earlier this year, the Nigerian naira has shown relative stability against the US dollar.
According to recent CBN data, the naira gained N5, closing at N1,540 per dollar on Thursday, December 19, compared to the previous day’s rate of N1,545. In the parallel market, the naira remained stable at around N1,660 to the dollar.
