CBN Grants Bureau de Change Operators Temporary Access to FX Market for Seasonal Demand

 

The Central Bank of Nigeria (CBN) has introduced a temporary measure allowing eligible Bureau de Change (BDC) operators to access the Nigerian Autonomous Foreign Exchange Market (NAFEM) to purchase $25,000 weekly. The arrangement, designed to address heightened seasonal foreign exchange (FX) demand, will run from December 19, 2024, to January 30, 2025.

In a statement issued by T.G. Allu, the acting director of trade and exchange at the CBN, the apex bank clarified that BDC operators would acquire FX from authorized dealers, specifically banks licensed by the CBN, to meet retail market needs.

“To meet expected seasonal demand for foreign exchange, the CBN is allowing temporary access for all existing BDCs to the NAFEM for the purchase of FX from Authorized Dealers, subject to a weekly cap of $25,000,” the statement read.

BDC operators are required to fully fund their accounts before accessing the market, adhering to prevailing NAFEM rates. They must select a single authorized dealer for transactions under this arrangement and maintain a maximum price spread of 1% for retail pricing. All transactions must be reported to the CBN’s Trade and Exchange Department to ensure compliance and transparency.

The CBN emphasized that allowances for personal travel (PTA) and business travel (BTA) remain accessible through banks for legitimate travel purposes. Additionally, all FX transactions will continue to be conducted at 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 added.

This move follows the CBN’s earlier decision in September to allow FX sales to eligible BDC operators at a rate of N1,590 per dollar to address demand for invisible transactions. These measures reflect the bank’s ongoing efforts to stabilize Nigeria’s FX market and ensure adequate liquidity during periods of increased demand.

As the holiday season approaches, this temporary intervention aims to ease pressure on the FX market and maintain stability in Nigeria's financial sector.