Ordinary Nigerians are expected to benefit from the Central Bank of Nigeria’s newly launched Foreign Exchange Bureau de Change Tracker (FXBT), a digital platform designed to improve transparency, stabilise the retail foreign exchange market and make official foreign exchange more accessible.
The initiative is part of the CBN’s efforts to strengthen oversight of Bureau De Change (BDC) operations and reduce abuses in the retail foreign exchange market.
Under the new guidelines, licensed BDC operators are required to resell any unused foreign exchange purchased from the official market within 24 hours after the approved utilisation period expires.
The apex bank believes the new system will protect customers from excessive charges, improve access to foreign exchange and reduce market distortions.
One of the major benefits of the framework is protection against overpricing. BDC operators are required to maintain a profit margin of no more than one per cent above the official purchase price of foreign exchange. The digital tracker also enables the CBN to monitor transactions in real time, making it easier to identify operators who violate the rules.
The new framework is also expected to promote fair and more uniform pricing of foreign exchange. Authorised dealer banks will sell foreign exchange to licensed BDCs at prevailing market rates, helping to reduce wide price differences across the retail market.
For individuals seeking foreign exchange for travel, education or medical treatment abroad, the initiative is expected to make access to official dollars easier. Licensed BDCs will continue to receive weekly foreign exchange allocations to meet eligible retail demands, including Personal Travel Allowance (PTA) and Business Travel Allowance (BTA).
The policy is also aimed at reducing artificial scarcity in the foreign exchange market. By requiring operators to resell unused foreign currency within 24 hours, the CBN hopes to discourage hoarding and ensure that dollars remain available to genuine end users.
The apex bank also believes the tracker will reduce reliance on the parallel market. Increased transparency and tighter monitoring are expected to discourage speculative trading and illegal diversion of foreign exchange while reducing the risks associated with buying foreign currency from unregulated street traders.
The FXBT forms part of new operational guidelines issued by the CBN to regulate how licensed BDCs purchase foreign exchange from authorised dealer banks through the Nigerian Foreign Exchange Market (NFEM).
According to the CBN, the guidelines provide clear procedures covering eligibility requirements, transaction processing, settlement, reporting obligations and compliance responsibilities.
The bank said the framework is designed to improve the implementation of its policy allowing licensed BDCs to source foreign exchange from the official market while strengthening regulation of the retail foreign exchange segment.
The initiative is expected to improve transparency, strengthen confidence in the official foreign exchange market and ensure that foreign currency reaches individuals and businesses with genuine needs.