The Central Bank of Nigeria (CBN) has approved Bureau de Change (BDC) operators to temporarily buy up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
According to the apex bank, BDC will only be allowed to buy dollars from NAFEM from December 19, 2024, through January 30, 2025.
The arrangement was announced in a circular dated December 19, 2024, signed by T.G. Allu on behalf of the acting director of the trade and exchange department.
The apex bank said the move is designed to meet seasonal retail demand for FX during the holiday period.
According to CBN, under the directive, BDCs may acquire FX from a single authorised dealer of their choice, provided they fully fund their accounts before accessing the market.
The CBN specified that all transactions under this initiative must occur at the prevailing NFEM rate, with BDC operators adhering to a maximum pricing spread of 1% when offering FX to retail end-users.
Punch reports that all transactions conducted under the scheme must be reported to the CBN’s Trade and Exchange Department.
The circular reads:
The CBN assured Nigerians that foreign currencies for PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) would remain available through banks for legitimate travel and business purposes.
The circular added:
Aminu Gwadabe, the president of the Association of Bureau de Change Operators of Nigeria, in a chat with TimesNow.com.ng express optimism.
He said:
Earlier, TimesNow.com.ng reported that President Bola Tinubu expressed optimism that the naira would bounce back in the foreign exchange market in 2025.
Speaking at the presentation of the 2025 budget to the National Assembly, Tinubu said he expects the naira exchange rate to drop to N1,500/$1 in 2025.
Also, the president added that the current inflation rate of 30% will drop by half in 2025.
Proofreading by James, Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
