By Abidemi Samuel
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In a move designed to cater to the seasonal surge in retail foreign exchange demand during the holiday period, the Central Bank of Nigeria (CBN) has temporarily permitted Bureau de Change (BDC) operators to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
This directive, which takes effect from December 19, 2024, to January 30, 2025, allows BDCs to access FX from a single authorized dealer of their choice, provided they fully fund their accounts before accessing the market. The transactions will occur at the prevailing NFEM rate, with BDCs required to adhere to a maximum 1 percent spread when pricing FX for retail end-users.
To ensure transparency, all transactions conducted under this scheme must be reported to the CBN. The apex bank’s decision to reopen the FX window for BDCs is aimed at meeting the expected seasonal demand for foreign exchange, thereby easing the pressure on the foreign exchange market.
The CBN’s decision comes as the Naira weakened slightly against the dollar in the foreign exchange market on Friday. As the holiday season approaches, this temporary reprieve for BDCs is expected to help stabilize the foreign exchange market and cater to the increased demand for FX.
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