By Uche Amunike
The Naira closed flat in the foreign exchange (FX) market on Tuesday as a result of reduced demand and improved liquidity as the Central Bank of Nigeria (CBN) extended dollar access to the Bureau De Change BDC operators.
According to data from the CBN, the naira steadied at N1,499 per dollar at the Nigerian Foreign Exchange Market, (NFEM), which is the official foreign exchange platform of Africa’s fourth largest economy.
Authorized dealers quoted the dollar at the highest rate of N1,502 per dollar, which was slightly lower than the N1,500 quoted the day before. Currency dealers were seen offering the dollar the lowest rate of N1,494 which was less than the N1,418 offered on Monday at the market.
According to data submitted by the FMDQ Securities Exchange Limited, the Naira, which opened at N1,496.50 to one dollar closed at N1,498.95 per dollar, therefore recording a 0.22% depreciation compared to N1,495.60 which was closed on Monday, at the FMDQ, according to data which was computed based on FMDQ exchange foreign exchange closing rate methodology, using data from Bloomberg BMatch.
On Tuesday, the Naira closed flat at an average rate of N1,600 per dollar as against N1,599.33 which was quoted on Monday at the parallel market, also known as black market. In some areas of street trading, the dollar was sold for N1,595 and N1,605 naira in other areas.
Presently, the CBN has granted access to Bureau De Change (BDC) operators to purchase foreign exchange from the Nigerian Foreign Exchange Markets (NFEM), so as to meet up with the demand of retail markets for invincible transactions pending May 30, 2025.
This announcement was made in a circular issued on Monday by the Acting Director of the Trade and Exchange department, W.J Kanya. He explained that this move will allow existing BDCs to continue having access to the market under the same terms and conditions previously set by the CBN.
The circular, which was addressed to every BDC operator and the general public made reference to an earlier directive issued on December 19, 2024 under circular number TED/FEM/PUB/FPC/001/030.
Initially, the directive permitted BDCs to buy foreign exchange from authorized dealers with a weekly couple of $25,000.09. The initial expiration date of January 31, 2025 has now been officially extended.
The CBN clarified in the circular that they had extended the initial expiry date of January 31, 2025 to May 30, 2025.
It partly read: ‘The expiry date of January 31, 2025, which was granted in the above-mentioned circular, has been extended to May 30, 2025. All other terms and conditions in the above-mentioned circular remain unchanged.’
This decision aligns with the apex bank’s wider strategy to stabilize the foreign exchange market and ensure accessibility to retail demand for eligible invisible transactions.
It also provides relief to BDC operators and market participants who have been expecting clarity on the CBN’s position regarding their access to foreign exchange.
With this move, the CBN will successfully regulate and stabilize the currency markets, even as they ensure controlled access for BDCs.
