CBN Opens FX Window for BDC to Stock up at NFEM Rate
The Central Bank of Nigeria (CBN) has opened a temporary window that allows Bureau de Change (BDC) operators access to stock up US dollars at an official or Nigerian Foreign Exchange Market rate to meet seasonal demand.
In what the apex bank called a temporary measure to meet year-end demand for invisible FX transactions, the authority allows BDC to buy up to $25,000 each week from banks at the official rate as part of an effort to keep the exchange rate stable.
“In order 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,” a circular declared.
According to the CBN, 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% is allowed on the pricing offered by BDCs to retail end-users,” the CBN said.
The Apex Bank also reminded the public of the continued availability of personal and business travel allowances (PTA/BTA) from their banks to travel requirements. CBN said all legitimate and eligible foreign exchange transactions are expected to be completed in the NFEM at the market-determined exchange rate.
“The CBN remains committed to a fully functional foreign exchange market and will continue to provide liquidity when necessary to manage price volatility,” the circular reads. #CBN Opens FX Window for BDC to Stock up at NFEM Rate Moody’s Affirms Seplat’s Corporate Family Rating, Outlook Positive
