Forex Market Update: BDC Operators Yet to Access CBN’s $150,000 Weekly Window
- The CBN earlier approved a policy allowing licensed BDCs to purchase up to $150,000 weekly through authorised dealers
- However, BDC operators said they have not yet accessed the official forex window despite the announcement
- Settlement account requirements and banking processes are cited as operational challenges
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Bureau de Change (BDC) operators say they have yet to access the official foreign exchange window announced by the Central Bank of Nigeria (CBN), Leadership reported.
This is in spite of the recent steady gains of the Naira, narrowing the gap between the official and parallel market exchange rates. Recent market data show that the Naira appreciated by nearly 7% within two weeks across both segments of the market, reaching one of its strongest levels in about two years.
Source: Getty Images
At the parallel market, the naira traded at N1,340 to the dollar on Thursday, compared to N1,440 earlier in the week. At the official window, it closed at N1,338 to the dollar, improving from N1,347 recorded on Monday.
The apex bank had previously issued a circular allowing licensed BDCs to access foreign exchange through authorised dealers at the prevailing market rate. Under the directive, each BDC is permitted to purchase up to $150,000 weekly, subject to Know Your Customer (KYC) requirements and due diligence checks.
CBN directive unimplemented – BDCs larment
Despite the policy announcement, some operators disclosed that no transactions have been completed under the new arrangement. A BDC operator, who requested anonymity, said the directive remains largely unimplemented.
According to him, the circular provides that disbursements will be made through settlement accounts, a provision that has raised operational concerns.
He questioned the feasibility of seamless, real-time transfers between domiciliary accounts across different banks, noting that such infrastructure may not yet be fully in place.
BDCs larment complicated processes
The operator added that while commercial banks appear supportive of the policy, many are still developing internal processes to align with the CBN’s directive. He explained that BDCs are required to submit bid orders through their banks, which would then access the market on their behalf.
He noted that this arrangement could reduce entry barriers for BDC participation if properly implemented, given the structure of the bureau de change segment.
The operator also maintained that BDCs remain a key channel in the CBN’s foreign exchange transmission mechanism, arguing that exchange rate movements often respond to interventions targeted at the segment.
He further suggested that improved access to the official window could help moderate the activities of informal and online traders, who attract customers with faster transactions and fewer documentation requirements.
Source: Getty Images
Nigeria’s reserves hit $48.5 billion
Legit.ng earlier reported that Nigeria’s foreign exchange reserves have surged to $48.5 billion, marking their highest level in nearly 13 years and signalling renewed strength in the country’s external position.
From $45.56 billion recorded on January 1, reserves have increased by $2.94 billion so far this year, representing a 6.45 per cent gain. The steady rise reflects sustained momentum in reserve accumulation and growing confidence in ongoing reforms.
The Central bank projected reserves might reach $51 billion by 2026, signalling a positive economic outlook.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
