Naira remained stable across foreign exchange (FX) markets on Tuesday, supported by reduced demand and improved liquidity following the Central Bank of Nigeria’s (CBN) decision to extend dollar access to Bureau De Change (BDC) operators. However at the close of trading, the naira held firm at ₦1,499 per dollar at the Nigerian Foreign Exchange Market (NFEM), the official FX platform.
According to CBN data, authorized dealers quoted the highest exchange rate at ₦1,502/$, slightly below the ₦1,500 recorded the previous day. Meanwhile, the lowest dealer offer stood at ₦1,494/$, compared to ₦1,480 on Monday.
According to figures from the FMDQ Securities Exchange Limited, the naira opened trading at ₦1,496.50/$1 and closed at ₦1,498.95 per dollar, reflecting a 0.22% depreciation from Monday’s closing rate of ₦1,495.60. This data was calculated using the FMDQ Exchange FX Closing Rate Methodology, which sources information from Bloomberg BMatch. In the parallel market (black market), the local currency remained relatively stable, closing at an average rate of ₦1,600 per dollar, compared to ₦1,599.33 on Monday. In various street trading locations, the dollar was exchanged between ₦1,595 and ₦1,605.
To sustain FX liquidity and meet retail market demand for invisible transactions, the CBN has extended the temporary access granted to BDC operators to purchase foreign exchange from the Nigerian Foreign Exchange Market (NFEM) until May 30, 2025.
This extension was announced in a circular issued on Monday by W. J. Kanya, the Acting Director of the Trade and Exchange Department. The directive refers to an earlier CBN circular dated December 19, 2024 (TED/FEM/PUB/FPC/001/030), which initially permitted BDC operators to purchase up to $25,000.09 weekly from authorized dealers. The directive, originally set to expire on January 31, 2025, has now been extended.
The CBN’s statement confirmed it, “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 move by the CBN is expected to enhance dollar liquidity in the retail FX market, ensuring continued access for businesses and individuals dealing with foreign exchange transactions.
