CBN Grants BDCs Access to $25,000 Weekly for Seasonal Forex Demand
The Central Bank of Nigeria (CBN) has approved temporary access for Bureau de Change (BDC) operators to purchase up to $25,000 weekly from the Nigerian Foreign Exchange Market (NFEM) to address heightened seasonal demand for foreign exchange (FX) during the holiday period.
This directive, outlined in a circular signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department, became effective on December 19, 2024, and will last until January 30, 2025.
Key Highlights of the Directive:
- Authorized Transactions:
- BDCs can purchase FX from a single Authorised Dealer of their choice.
- Transactions must occur at the prevailing NFEM rate.
- Funding and Pricing Rules:
- BDCs must fully fund their accounts before accessing the market.
- A maximum 1% spread is allowed when pricing FX for retail end-users.
- Reporting Requirements:
- All transactions under this scheme must be reported to the CBN’s Trade and Exchange Department.
- Availability of PTA and BTA:
- The CBN reassured the public that Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) remain accessible through banks for legitimate travel and business needs.
This initiative aligns with the CBN’s efforts to manage foreign exchange demand during the peak holiday season while ensuring compliance with NFEM guidelines.
The CBN emphasized that all transactions are to be conducted at market-determined exchange rates, reaffirming its commitment to maintaining transparency and stability in the FX market.
