The Central Bank of Nigeria (CBN) has granted eligible Bureau de Change (BDC) operators more time to access the Nigerian Autonomous Foreign Exchange Market (NAFEM) for foreign exchange (FX).
Initially, the CBN had in an earlier directive with Ref No TED/FEM/PUB/FPC/001/030 issued on December 19, 2024, granted BDC operators temporary access to NAFEM to purchase $25,000 weekly from December 19, 2024, to January 30, 2025.
However, in a recent circular with Reference No TED/FEM/PUB/FPC/001/003 issued by the apex bank’s Acting Director, Trade and Exchange Department, Dr. W.J. Kanya, the apex bank extended the earlier deadline until May 30, 2025.
The circular stated: “We refer to our circular TED/FEM/PUB/FPC/001/030 dated December 19, 2024, which granted temporary access to existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD25,000.00.
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“The expiry date of January 31, 2025, which was granted in the above-mentioned circular, has been extended to May 30, 2025.
“All other terms and conditions in the above-mentioned circular remain unchanged”, it added.
Experts believe that by extending access to FX market for the BDCs, the CBN aims to enhance liquidity at the retail end of the FX market, ensuring that BDCs meet the demand for their transactions.
It would be recalled that in the past year, the CBN had introduced sundry policy guidelines to regulate FX access to BDCs and others, including oversight of BDC operations and enforcement of regulatory compliance in the FX market space as a strategic measure of unifying exchange rates in the market.
The apex bank’s management reiterated its commitment to maintaining a fully functional foreign exchange market, ensuring liquidity when necessary to manage price volatility.
