The Central Bank of Nigeria has issued new guidelines restricting Bureau de Change operators to purchasing a maximum of $25,000 per week from a single authorised dealer bank as part of efforts to regulate the retail foreign exchange market and enhance transparency.
The directive, outlined in a circular on Wednesday from the Trade and Exchange Department, was signed by Dr W. J. Kanya, the acting Director of the department, and takes effect immediately.
According to the circular, the new rule means that BDCs must select one authorised dealer bank per week to source their allocated forex, preventing them from obtaining funds from multiple banks.
It read, “Authorised dealers shall sell foreign exchange cash to BDCs subject to a maximum of USD25,000.00 to a BDC per week.
“A BDC shall approach its preferred authorised dealer bank and can only procure the said amount from only that bank of its choice in a week. Any breach of this condition will attract appropriate sanction.
“The selling rate by the Authorised Dealers to BDCs shall be the prevailing day rate at the NFEM window.”
The CBN warned that any BDC found violating this rule would face appropriate sanctions.
It also mandated that forex must be sold at the prevailing rate in the Nigerian Foreign Exchange Market window to ensure consistency in pricing.
To curb excessive pricing, the CBN has imposed a one per cent cap on the margin BDCs can charge end-users above their purchase rate.
The restriction applies to all forex sold by BDCs, regardless of its source, ensuring that consumers are not subjected to exorbitant charges.
The guidelines also introduced strict reporting requirements for both BDCs and authorised dealer banks.
Banks must submit weekly reports on forex sales to BDCs via a specified format to the CBN Trade and Exchange Department, while BDCs must render daily returns on forex purchases and sales through the Financial Institutions Forex Reporting System.
The CBN has further restricted the use of BDC-purchased forex to specific transactions, with a quarterly disbursement cap of $5,000 per end-user.
The eligible transactions include business and personal travel allowances, overseas school fees, and overseas medical fees.
In a bid to strengthen anti-money laundering measures, the CBN has directed BDCs to maintain proper records of all transactions, including the Bank Verification Number of end-users and an endorsement of the amount disbursed in the beneficiary’s international passport.
The bank also reiterated the need for strict adherence to Anti-Money Laundering laws and Know Your Customer requirements.
The apex bank has warned that any authorised dealer bank or BDC that diverts funds or violates the guidelines will face severe sanctions, including suspending their dealership licence.
The latest policy move is part of the CBN’s broader strategy to stabilise the naira, prevent forex speculation, and improve liquidity in the foreign exchange market.
