By Ken Chiwendu
The Central Bank of Nigeria , CBN has granted temporary permission to Bureau de Change BDC operators, to purchase up to $25,000 in foreign exchange weekly from the Nigerian Foreign Exchange Market, which was launched earlier this month.
According to a circular dated December 19 and signed by T. G Allu on behalf of the CBN ‘s Acting Director,Trade and Exchange Department,the measure is aimed at meeting forex demand during the season adding that it is with effect from December 19, 2024, to January 30, 2025.
“To meet expected seasonal demand for foreign exchange, the CBN is allowing temporary access for all existing BDCs to the NFEM for the purchase of FX from authorised dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only). This window will be open between December 19, 2024 to January 30, 2025.
“BDC operators can purchase FX under this arrangement from only one authorised dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1 per cent is allowed on the pricing offered by BDCs to retail end-users.”The circular read.
The Apex Bank assured the public that Personal Travel Allowance PTA,and Business Travel Allowance BTA ,remain available through banks for legitimate travel and business needs.
These transactions are to be conducted at market-determined exchange rates within the NFEM framework, as the apex bank reiterated its commitment to ensuring a fully functional and liquid foreign exchange market while addressing price volatility.
