The Central Bank of Nigeria (CBN) has announced an extension of the foreign exchange (FX) sale period for Bureau de Change (BDC) operators until May 30, 2025. This move underscores the apex bank’s commitment to stabilizing the FX market and ensuring liquidity at the retail end.
The decision, outlined in a circular signed by Dr. W. J. Kanya, Acting Director of the Trade and Exchange Department, extends the previous deadline of January 31. Under the revised policy, BDC operators can continue purchasing FX from authorized dealers, with a weekly cap of $25,000.
ABCON Welcomes the Policy Shift
The Association of Bureau de Change Operators of Nigeria (ABCON) has praised the extension, highlighting its role in promoting financial inclusiveness through the Electronic Foreign Exchange Matching System (EFEMS).
Dr. Aminu Gwadabe, President of ABCON, urged deposit money banks to comply with the CBN’s directive, stressing the importance of collaboration to ensure market liquidity and stability. He emphasized that BDCs serve as a critical component in bridging the gap between the official and parallel FX markets.
Addressing Market Volatility
The CBN’s decision comes as part of broader FX market reforms aimed at narrowing the exchange rate disparity and discouraging hoarding or speculative trading. The reintroduction of controlled FX sales to BDCs in December 2024 sought to address liquidity shortages and support naira stability.
While the policy provides short-term relief for businesses and individuals reliant on BDCs for foreign exchange transactions, its long-term effectiveness will depend on macroeconomic factors such as inflation, external reserves, and capital inflows. The coming months will determine whether the measure successfully sustains market stability.
