- The Central Bank of Nigeria granted Bureau de Change operators permission to purchase up to $25,000 weekly from the Nigerian Foreign Exchange Market during the festive season
- A circular issued by the CBN on December 19, 2024, outlined that BDCs could buy foreign exchange from authorised dealers, with a 1% maximum spread on pricing
- The naira gained value against the dollar, closing at N1,540/$ on December 19, 2024, marking a N5 improvement from the previous day’s rate of N1,545/$
The Central Bank of Nigeria (CBN) has authorised Bureau de Change (BDC) operators to purchase up to $25,000 weekly from the Nigerian Foreign Exchange Market (NFEM) to meet seasonal demand for foreign exchange during the holiday period.
This temporary arrangement, which was announced in a circular dated December 19, 2024, will be in effect from December 19, 2024, to January 30, 2025. The move is aimed at addressing the increased forex demand typically seen during the festive season.
According to the circular, BDCs may purchase foreign exchange from one authorised dealer of their choice, provided they fully fund their accounts before accessing the market. The transactions will be conducted at the prevailing NFEM rate, and BDCs are required to maintain a maximum 1% spread when pricing forex for retail end-users.
All transactions carried out under this scheme will be reported to the CBN’s Trade and Exchange Department.
The CBN assured the public that Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) remain accessible through banks for legitimate travel and business purposes. Transactions for PTA and BTA will be executed at market-determined exchange rates within the NFEM framework.
The CBN also emphasised its commitment to ensuring a liquid and functional foreign exchange market while reducing price volatility. The naira has maintained relative stability since the launch of the NFEM, with the exchange rate at N1,540/$ on Thursday, reflecting a slight improvement from the previous day's rate of N1,545/$.
In November, the CBN revised its guidelines for the NFEM, allowing licensed BDCs to purchase forex directly from authorised dealers for the first time in years. However, the circular did not specify the monthly cap on purchases under this new scheme.
The naira's exchange rate remained relatively stable at N1,660/$ in the black market, despite fluctuations in the formal market.
CBN to start fining banks over cash scarcity at ATMs
Meanwhile, TheRadar reported that the Central Bank of Nigeria (CBN) issued a stern warning to financial institutions over the ongoing cash scarcity at Automated Teller Machines (ATMs) across the country.
CBN governor, Olayemi Cardoso, announced that penalties would be imposed on erring banks and other financial players during his address at the annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria on Friday, November 29.
