Naira closes flat across FX market as CBN extends dollar access to BDCs

The naira on Tuesday closed flat across foreign exchange (FX) markets following reduced demand and improved liquidity as the Central Bank of Nigeria (CBN) extended dollar access to the Bureau De Change (BDC) operators.

After trading on Tuesday, the naira steadied at N1,499 per dollar at the Nigerian Foreign Exchange Market (NFEM), the official FX platform of Africa’s fourth largest economy, data from the CBN showed.

Authorised dealers quoted the dollar at the highest rate of N1,502/$, slightly lower than N1,500 seen on the previous day. The market witnessed the currency dealers offering the dollar at the rate of N1,494, lower than N1,480 offered on Monday.

Data from the FMDQ Securities Exchange Limited revealed that the naira, which opened at N1,496.50/$1, closed at N1,498.95 per dollar, marking a 0.22 percent depreciation compared to N1,495.60 closed on Monday at the NFEM. The data was computed based on FMDQ Exchange FX Closing Rate Methodology using data from Bloomberg BMatch.

The local currency closed flat at an average rate of N1,600 per dollar on Tuesday as against N1,599.33 quoted on Monday, at the parallel market, also known as black market. In some areas of street trading, the dollar sold for N1,595 and N1,605 in other areas.

CBN) has extended the temporary access granted to Bureau De Change (BDC) operators to purchase foreign exchange from the Nigerian Foreign Exchange Market (NFEM) to meet retail market demand for invisible transactions, until May 30, 2025.

This extension, which was disclosed in a circular issued on Monday by W. J. Kanya, acting director of the Trade and Exchange Department, allows existing BDCs to continue accessing the market under the same terms and conditions previously set by the apex bank.

The circular, addressed to all BDC operators and the general public, referenced an earlier directive issued on December 19, 2024, under circular number TED/FEM/PUB/FPC/001/030. The directive had initially permitted BDCs to buy foreign exchange from authorised dealers, with a weekly cap of $25,000.09. The initial expiration date of January 31, 2025, has now been officially extended.

In the circular, the CBN stated: “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.”