The Central Bank of Nigeria (CBN) has extended the Foreign Exchange (FX) sale period to Bureau de Change (BDC) operators until May 30. This aims to better serve retail market demands.
The bank disclosed this in a circular, signed by Dr W. J. Kanya, Acting Director of the Trade and Exchange Department, to BDCs on Monday and made available on its website.
The circular, titled, “Sales of Foreign Exchange To BDCs To Meet Retail Market Demand For Eligible Invisible Transactions”, shifted the previous deadline of Jan. 31.
“We refer to our circular TED/FEM/PUB/FPC/001/030 dated December 19, 2024, which granted temporary access to existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00.
“The expiry date of January 31, 2025 which was granted in the above mentioned circular has been extended to May 30, 2025.
“All other terms and conditions in the above mentioned circular remain unchanged,” the acting director said.
Kanya added that CBN remained committed to ensuring a fully functional foreign exchange market and would continue to provide liquidity to manage price volatility.
ABCON commends CBN on FX sale period extension
Meanwhile, the Association of Bureau de Change Operators of Nigeria (ABCON) has commended the Central Bank of Nigeria (CBN) for extending the Foreign Exchange (FX) sale period to its members until May 30.
ABCON President, Dr Aminu Gwadabe, told NAN in Lagos on Monday, that the move demonstrates the commitment of the CBN to stabilising the FX market.
According to him, it also promotes inclusiveness through the Electronic Foreign Exchange Matching System (EFEMS).
The CBN announced the extension in a circular signed by Dr W. J. Kanya, Acting Director of the Trade and Exchange Department to BDCs.
The circular, titled, “Sales of Foreign Exchange To BDCs To Meet Retail Market Demand For Eligible Invisible Transactions,” shifts the previous deadline of Jan. 31 to May 30.
It extends the temporary access granted to BDCs to the NFEM for purchasing FX from Authorised Dealers, subject to a weekly cap of 25,000 dollars.
Gwadabe, however, expressed concern that banks failed to comply with the initial notice of the apex bank in December 2024, which instructed them to sell FX to BDCs.
He urged the deposit money banks to support CBN and comply with the directive.
“ABCON and its members indeed received the news as a good development. We considered it as part of the CBN efforts at ensuring continuity and its determination for the inclusiveness of our sub-sector in the EFEM Market.
“We, however, call on all money deposit banks to partner with CBN and our members in the implementation of this circular, to ensure liquidity in the retail end sector and the Naira’s ongoing stability.
“On behalf of my members, I extend my sincere gratitude to the CBN management for their flexibility and transformative leadership.
“I assure them that we will continue to serve as a vital third-leg mechanism, committed to eliminating volatility and narrowing the gap between the parallel market and the EFEM market,” he said.
Naira depreciates by 1.4% as CBN extends FX sales deadline
The Naira depreciated at the official market on Monday, trading at N1,495.60 to a dollar.
Data from the FMDQ Security Exchange official forex trading platform revealed that the Naira lost N20.82.
This represents a 1.4 per cent loss when compared to the previous trading day on Friday, Jan. 31, when the local currency closed trading at N1,474.78 to a dollar.
Trading on the Investors and Exporters (I&E) Forex window on Monday recorded a high of N1,497.50 and a low of N1,470.00.
The Naira has enjoyed relative stability against the dollar since December 2024 due to sustained reforms by the Central Bank of Nigeria (CBN).
The reforms are aimed at ensuring transparency in the foreign exchange (FX) market.
The apex bank’s reforms are also boosting capacity of BDCs who are in the retail end of the FX market.
The apex bank on Tuesday, Jan. 28, in Abuja, approved waivers on the 2025 annual license renewal fee for all existing BDC operators.
The bank also on Monday, Feb. 3 extended deadline for sales of dollars to BDCs from Jan. 31 until May 30.
