Yuletide Economics: CBN Permits BDCs $25k Weekly Bank Purchases
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary access to purchase up to $25,000 weekly from authorized dealers in the Nigerian Foreign Exchange Market (NFEM).
This measure, effective from December 19, 2024, to January 30, 2025, aims to address increased foreign exchange demand during the festive season.
According to a CBN circular dated December 19, 2024, BDCs are permitted to buy foreign exchange from a single authorized dealer of their choice, provided they fully fund their accounts before accessing the market at prevailing NFEM rates. A maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.
The CBN emphasized that all legitimate and eligible foreign exchange transactions, including Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), remain accessible through banks at market-determined exchange rates.
The apex bank reiterated its commitment to maintaining a functional and liquid foreign exchange market while managing price volatility.
This initiative is part of the CBN’s efforts to ensure adequate foreign exchange liquidity during the holiday period, facilitating smooth transactions for individuals and businesses.