The Central Bank of Nigeria (CBN) says it has resumed the sales of foreign exchange to BDCs to meet retail market demand for eligible invisible transactions.
This is contained in a circular signed by T.G. Allu, for Ag. Director, Trade and Exchange Department, CBN, and made available to newsmen on Friday in Lagos.
“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a 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, 000.000.
“This window will be opened between Dec. 19, 2024 to Jan. 30, 2025,
“BDC operators can purchase FX under this arrangement from only one Authorised Dealers 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 one percent is allowed on the pricing offered by BDCs to retail end-users,” the circular said.
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The circular reminds the general public of the continued availability of PTA/BTA from their Banks to meet their personal and business travel requirements.
According to it, 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 added.
