The Central Bank of Nigeria has extended the temporary access granted to Bureau de Change operators for purchasing foreign exchange from the Nigerian Foreign Exchange Market till May 30, 2025.
This extension was disclosed in a circular issued on Monday by the Trade and Exchange Department of the apex bank, allowing BDCs to continue purchasing forex from authorised dealers under existing conditions.
This extension demonstrates the bank’s commitment to maintaining a fully functional forex market and to enabling it to meet the appropriate confidential trading needs of its retail clients.
The company added that it will continue to provide liquidity as required to manage price volatility.
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The letter stated: “We refer to document TED/FEM/PUB/FPC/001/030 dated December 19, 2024, granting NFEM temporary access to existing BDCs to purchase forex products from authorised dealers: The weekly price is $25,000. “The January 31, 2025 expiration date given in the above terms has been extended to May 30, 2025.”
“All other terms and conditions in the above cycle remain unchanged.”
The Bank remains committed to maintaining a well-functioning foreign exchange market and will continue to provide liquidity where necessary to manage price volatility.
The decision comes at a time when the country’s foreign exchange reserves are rapidly declining.
Nigeria’s foreign exchange reserves fell by $1.11 billion in January 2025. According to central bank data, the country’s reserves fell from $40.88 billion on January 2 to $39.77 billion as of January 30. This represents a loss of 2.72 per cent in one month.
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The decline in reserves is due to the central bank’s continued intervention in foreign trade, including external debt and capital outflows. Despite the significant appreciation of the naira in the same month, the decline in reserves suggests that the central bank may have to use some of its reserves to stabilize the currency and market control in the economy.
By allowing the continued use of foreign exchange, the central bank aims to improve the liquidity of end markets and ensure that BDCs meet the business needs of both individuals and businesses.
In recent years, the central bank has implemented a series of measures to control foreign capital inflows and limit volatility, including tightening supervision of BDC operations, complying with regulatory requirements, and making changes to the integration of exchange rates.
