CBN Grants BDCs Access to $150,000 Weekly in Official Forex Market

The Central Bank of Nigeria (CBN) has implemented a new foreign exchange policy granting licensed Bureau de Change (BDC) operators weekly access to $150,000 in the official forex market. The circular, signed by Dr. Musa Nakorji, Director of Trade and Exchange Department, aims to improve foreign currency supply in the retail market to meet the legitimate needs of Nigerian individuals and businesses.

The policy allows BDCs to source foreign exchange at prevailing market rates, removing previous restrictions and providing operational flexibility while adhering to CBN regulations. Transactions will be settled through licensed financial institutions or third parties, with a ban on cash payments exceeding 25 transactions' value.

Aminu Gwadabe, President of the Association of Bureau de Change Operators of Nigeria (ABCON), expressed optimism about the policy's positive impact on stabilizing the Naira. This move comes amid increasing foreign exchange reserves, reaching $46.11 billion by the end of January, offering support to Nigeria's forex buffer amidst global and domestic economic challenges.