The Central Bank of Nigeria (CBN) has extended the foreign exchange (FX) sale period for Bureau de Change (BDC) operators until May 30, 2025, demonstrating its commitment to stabilizing the FX market.
Reacting to the announcement, the Association of Bureau de Change Operators of Nigeria (ABCON) welcomed the move, emphasizing its role in promoting financial inclusiveness through the Electronic Foreign Exchange Matching System (EFEMS).
ABCON Calls for Bank Compliance
ABCON President, Dr. Aminu Gwadabe, expressed concern that deposit money banks had not fully complied with the CBN’s earlier directive in December 2024, which instructed them to sell FX to BDCs. He urged banks to support the initiative, ensuring liquidity at the retail end of the market.
“We consider this extension a positive development that ensures continuity and inclusiveness in the FX market. However, we call on all banks to collaborate with the CBN and BDCs to maintain liquidity and stabilize the naira,” Gwadabe stated.
Key Details of the Extension
- The extension was announced in a CBN circular signed by Dr. W. J. Kanya, Acting Director of the Trade and Exchange Department.
- It prolongs the initial January 31 deadline to May 30, allowing BDCs to purchase FX from Authorized Dealers under a weekly cap of $25,000.
Market Implications
The CBN’s decision is part of broader FX market reforms aimed at reducing volatility and bridging the gap between official and parallel market exchange rates. The controlled sale of FX to BDCs, reintroduced in December 2024, seeks to address liquidity shortages and curb speculation.
While BDC operators see this as a stabilizing measure, the effectiveness of the policy will depend on macroeconomic factors such as inflation, foreign reserves, and capital inflows. The coming months will reveal whether the initiative can sustain long-term currency stability.
