The Central Bank of Nigeria (CBN) has issued new tips allowing Bureau de Change (BDC) operators to buy as much as $25,000 weekly from Authorised Vendor Banks (ADBs) to fulfill retail market demand for eligible invisible transactions.
The directive, contained in a round from the Commerce and Alternate Division, additionally outlines compliance necessities to make sure transparency and curb potential foreign exchange misuse.
Dated February 5, 2025, the round was signed by Dr. W. J. Kanya, the Appearing Director of the Commerce & Alternate Division on the CBN.
BDCs restricted to at least one supplier per week
Below the brand new rules, BDCs should supply the allotted foreign exchange from a single authorised supplier {bank} per week. This restriction is aimed toward stopping speculative exercise and making certain higher oversight. Any BDC discovered violating this rule will face acceptable sanctions from the CBN.
Additionally, authorised sellers should promote FX to BDCs on the prevailing charge within the Nigerian Overseas Alternate Market (NFEM) window to make sure consistency in pricing.
Foreign exchange gross sales to end-users capped at 1% margin
The CBN has imposed a 1% cap on the margin BDCs can cost end-users above their buy value. This measure is designed to guard customers from extreme fees and promote a fairer foreign exchange market.
Additionally, the one per cent margin applies to all foreign exchange offered by BDCs, no matter its supply.
To boost market transparency, the CBN has made reporting necessities obligatory for each Authorised Vendor Banks and BDCs:
These measures will assist the CBN monitor foreign exchange flows and stop illicit actions within the foreign money market.
Most $5,000 per disbursement
The round additionally specifies that BDCs can solely disburse bought FX for particular transactions, with a most of $5,000 per transaction, quarterly. These embody:
As a part of efforts to fight {financial} crimes, the CBN has directed BDCs to take care of correct information of all transactions. This consists of:
The CBN additionally reiterated that every one operators should comply strictly with Anti-Cash Laundering (AML) legal guidelines and Know Your Buyer (KYC) necessities to stop fraud and illicit {financial} actions.
The apex {bank} has warned that any Authorised Vendor {Bank} or BDC that violates these tips—together with foreign exchange diversion—will face extreme sanctions, together with the suspension of their dealership license.
The CBN’s transfer to permit BDCs entry to foreign exchange purchases from authorised sellers is seen as a part of broader efforts to enhance liquidity within the foreign exchange market and guarantee reliable retail demand is met. The apex {bank} continues to implement measures to stabilise the naira and curb speculative actions.
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