Erhuvwu Etarhienyo
On Tuesday, the naira remained steady across foreign exchange (FX) markets due to lower demand and better liquidity, following the Central Bank of Nigeria’s (CBN) decision to grant Bureau De Change (BDC) operators continued access to dollars.
Following Tuesday’s trading, the naira remained stable at N1,499 per dollar on the Nigerian Foreign Exchange Market (NFEM), the official FX platform of Africa’s fourth-largest economy, according to data from the CBN.
Authorized dealers quoted the dollar at a peak rate of N1,502/$, slightly down from N1,500 the previous day. The market also saw currency dealers offering the dollar at N1,494, lower than the N1,480 rate seen on Monday.
Data from the FMDQ Securities Exchange Limited showed that the naira opened at N1,496.50/$1 and closed at N1,498.95 per dollar, reflecting a 0.22 percent depreciation from the N1,495.60 closing rate on Monday at the NFEM. This data was calculated using the FMDQ Exchange FX Closing Rate Methodology, based on information from Bloomberg BMatch.
The naira remained unchanged at an average rate of N1,600 per dollar on Tuesday, compared to N1,599.33 on Monday, in the parallel or black market. In certain street trading areas, the dollar was sold for N1,595, while in others, it went for N1,605.
The Central Bank of Nigeria (CBN) has extended the temporary permission for Bureau De Change (BDC) operators to purchase foreign exchange from the Nigerian Foreign Exchange Market (NFEM) to fulfill retail market demand for invisible transactions, until May 30, 2025.
In a circular issued on Monday by W. J. Kanya, acting director of the Trade and Exchange Department, the extension allows existing BDCs to maintain their access to the market under the same terms and conditions previously established by the central bank.
The circular, sent to all BDC operators and the public, referred to a previous directive issued on December 19, 2024, under circular number TED/FEM/PUB/FPC/001/030. This earlier directive had allowed BDCs to purchase foreign exchange from authorized dealers, with a weekly limit of $25,000.09. The original expiration date of January 31, 2025, has now been officially extended.
In the circular, the CBN announced: “The expiration date of January 31, 2025, stated in the referenced circular, has been extended to May 30, 2025. All other terms and conditions outlined in the circular remain the same.”
