CBN Directs Banks To Sell $150,000 To Bureau De Change Operators Weekly | Citizen NewsNG
Citizen NewsNG
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The Central Bank of Nigeria (CBN) has permitted licensed bureau de change (BDC) operators to access foreign exchange from the Nigerian Foreign Exchange Market (NFEM) through authorised dealer banks.
CBN announced on Tuesday in a circular signed by Musa Narkoji, director of the trade and exchange department, and addressed to all authorised dealer banks and the general public.
The apex bank said all BDCs duly licenced by the bank can now purchase foreign exchange from the NFEM through any authorised dealer of their choice at the prevailing market rate.
According to the circular, the move is aimed at improving foreign exchange liquidity in the retail segment of the market and meeting the legitimate needs of end users.
“Authorised Dealers are required to complete the necessary KYC and due diligence for their BDC clients in line with applicable regulations and the internal risk management framework,” CBN said.
“Upon completion of these requirements, foreign exchange may be sold to BDCs for utilisation in line with the existing BDC Guidelines, subject to a maximum of USD150,000 per week for each BDC.
“All licensed BDCs shall ensure the timely and accurate submission of returns to the Central Bank electronically, and in accordance with extant regulations.
“Any unutilised balances are expected to be sold back to the market within 24 hours (BDCS are not permitted to keep funds purchased from NFEM in their positions).”
The apex bank added that all foreign exchange transactions between BDCs, authorised dealers, and end-user customers must be settled through accounts held with licensed financial institutions.
The bank further prohibited third-party transactions and said cash settlement for foreign exchange sales must not exceed 25 percent of each transaction amount.
The CBN said all transactions under the arrangement remain subject to the existing BDC operational guidelines.
On December 20 2024, the CBN granted BDC operators temporary access to NAFEM to purchase $25,000 weekly from December 19, 2024, to January 30, 2025.
In February 2025, the financial regulator extended the timeframe for eligible BDCs to access the official window for FX
By Busola Aro
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