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
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