New CBN Regulations for BDCs: $25,000 Forex Cap
In December 2024, the Central Bank of Nigeria (CBN) granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange from the Nigerian Foreign Exchange Market (NFEM). This measure was implemented to meet the seasonal retail demand for foreign exchange during the holiday period and was effective from December 19, 2024, to January 30, 2025.
Under this arrangement, BDCs were allowed to purchase foreign exchange from a single authorized dealer of their choice, provided they fully funded their accounts before accessing the market. Transactions were conducted at the prevailing NFEM rate, with BDCs required to adhere to a maximum 1% spread when pricing foreign exchange for retail end-users.
As of now, there is no indication that this temporary measure has been extended beyond January 30, 2025. Therefore, BDCs are no longer permitted to purchase $25,000 weekly from the NFEM under this specific arrangement. For the most current information, it is advisable to consult official communications from the CBN or reputable financial news sources.