Nigeria’s Central Bank (CBN) has temporarily granted Bureau de Change (BDC) operators permission to purchase up to $25,000 weekly from the Nigerian Foreign Exchange Market (NFEM), which launched earlier this month.
The decision, announced in a circular dated December 19, 2024, aims to meet increased demand for foreign exchange during the holiday season. The arrangement will be in effect until January 30, 2025.
BDCs can purchase foreign exchange from a single authorised dealer of their choice, provided they fully fund their accounts beforehand. Transactions will be conducted at the prevailing NFEM rate, with a maximum 1% spread allowed on the pricing offered to retail end-users.
The CBN has emphasised that Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) remain available through banks for legitimate travel and business needs, to be conducted at market-determined exchange rates within the NFEM framework.
The apex bank reiterated its commitment to a fully functional and liquid foreign exchange market while addressing price volatility.
Last month, the CBN revised its guidelines to permit licensed BDCs to purchase foreign exchange directly from authorised dealers, subject to a monthly cap. Since the introduction of the NFEM platform, the naira has maintained relative stability, closing at N1,540 to the US dollar on Thursday at the NFEM. However, the naira remains at N1,660 to the US dollar in the black market.
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