The Central Bank of Nigeria (CBN) has approved licensed Bureau De Change (BDC) operators to participate in the Nigerian Foreign Exchange Market (NFEM), allowing each BDC to purchase up to USD150,000 weekly. The move is aimed at improving foreign exchange liquidity in the retail segment and meeting the legitimate needs of end users, the apex bank said.
The directive, issued in a circular signed by the Director of the Trade and Exchange Department, Dr. Musa Nakorji, permits licensed BDCs to access forex through any Authorised Dealer Bank of their choice at prevailing market rates. The CBN said the policy is designed to enhance market efficiency and broaden access to foreign exchange across the economy.
Strict compliance measures accompany the policy. Authorised dealers must conduct full Know-Your-Customer (KYC) and due diligence checks on BDC clients before selling foreign exchange. All licensed BDCs are required to submit timely and accurate electronic returns to the CBN in line with existing regulations.
To prevent hoarding and speculation, unutilised foreign exchange must be returned to the market within 24 hours. BDCs are prohibited from retaining FX purchased from the NFEM, and third-party transactions are barred. Settlement of all FX transactions must occur through accounts with licensed financial institutions, while cash settlements are capped at 25 per cent of each transaction.
The CBN said the guidelines strike a balance between expanding market access and maintaining strong regulatory oversight, ensuring liquidity in the foreign exchange market while safeguarding the integrity of Nigeria’s financial system.
Leave a Reply