CBN imposes $25,000 weekly cap on FX for BDCs

The Central Bank of Nigeria (CBN) has imposed a $25,000 weekly limit on foreign exchange purchases by Bureau de Change (BDC) operators, a measure aimed at tightening control over the retail forex market.

Under the directive, issued in a circular signed by Dr. W. J. Kanya, Acting Director of the Trade & Exchange Department, each BDC must source forex from only one authorised dealer bank (ADB) per week.

“Authorised dealers shall sell foreign exchange cash to BDCs subject to a maximum of USD 25,000.00 per week,” the circular states, warning that any violation will attract appropriate sanctions.

To prevent forex hoarding and misuse, the Central Bank of Nigeria (CBN) has capped BDC margins at one per cent over the purchase rate, limiting how much they can charge end-users. The central bank also requires BDCs to conduct forex sales at the prevailing rate on the Nigerian Foreign Exchange Market (NFEM) window.

The new framework strengthens oversight measures, mandating daily transaction reporting by BDCs through the Financial Institutions Forex Reporting System. Authorised dealer banks must also submit weekly reports on forex sales to the CBN.

To further regulate forex disbursements, the CBN capped individual allocations at $5,000 per quarter, covering only business and personal travel allowances, overseas school fees, and medical expenses.

READ ALSO:Senate threatens to arrest IGP, Customs CG, FIRS, NNPCL, CBN heads over audit snub 

BDC operators must now record the Bank Verification Number (BVN) of each end-user and endorse the amount disbursed in the beneficiary’s passport. The CBN emphasised that strict adherence to anti-money laundering (AML) and Know Your Customer (KYC) regulations is mandatory.

Officials warned that any violation of the new measures—by either BDCs or authorised dealer banks—could result in licence suspension or other penalties.