CBN Announces New Date as It Extends Deadline for BDCs to Buy Forex
- The Bureau de Change operators are permitted to continue buying foreign currency from approved dealers by the CBN
- This is an attempt to meet the demand for eligible invisible transactions in the retail industry
- The apex bank reaffirmed its commitment to maintaining a fully functional foreign currency market
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
To satisfy retail market demand for eligible invisible transactions, the Central Bank of Nigeria (CBN) has extended its approval for Bureau de Change (BDC) operators to buy foreign exchange from authorized dealers.
Source: Getty Images
The new deadline is set for May 30th, according to a circular released on Monday by the regulator's Trade and Exchange Department.
Following an earlier directive, TED/FEM/PUB/FPC/001/030, dated December 19, 2024, which gave current BDCs temporary access to source foreign exchange from the Nigerian Foreign Exchange Market (NFEM), the extension permits BDCs to purchase foreign currency up to a weekly cap of $25,000 per operator. The original directive was set to expire on January 31st.
“All other terms and conditions in the above-mentioned circular remain unchanged,” the circular stated.
Premium Times reported that to control price volatility, the apex bank promised to supply liquidity as needed and reiterated its dedication to preserving a fully operational foreign exchange market.
The action is anticipated to stabilize the retail foreign exchange market, as small enterprises and people looking for dollars for overseas travel, education, and medical bills continue to have difficulties in obtaining foreign money.
The decision was made in the midst of Nigeria's foreign exchange reserves declining by $1.11 billion in January, indicating ongoing strain on the nation's external reserves.
Meanwhile, Legit.ng has reported that the Association of Bureau De Change Operators of Nigeria (ABCON) has praised the Central Bank of Nigeria (CBN) for waiving the 2025 licence fees for its members.
In an interview with the News Agency of Nigeria (NAN) on Wednesday, Dr. Aminu Gwadabe, the association's president, acknowledged the achievement.
Gwadabe expressed gratitude to the apex bank's management for extending amnesty to his members by forgoing the yearly license renewal.
He claimed that the action demonstrates the CBN's resolve to put the new financial capitalisation standards for BDCs into effect.
Ahead of the revised deadline in June 2025, Gwadabe urged his members to unite and meet the additional capital requirements.
“We are willing to continue to collaborate, cooperate and comply with extant rules and regulations,” he said
ABCON sets operating hours for BDC operators
Legit.ng reported that the Association of Bureau De Change Operators of Nigeria (ABCON) has instructed its members to strictly adhere to operational business hours from 8am to 6pm.
In a memo signed by ABCON exco made available to Legit.ng, the association said defaulting members will face disciplinary action.
The association explained that the operating hours aligns with earlier mandates issued by the Central Bank of Nigeria (CBN) and the National Security Agency (NSA), which require strict compliance with these operational hours to enhance transparency and regulate activities in the retail forex market.
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Source: Legit.ng
