The Central Bank of Nigeria (CBN) has introduced new guidelines for Bureau de Change (BDC) operators to regulate the forex market and prevent misuse.
- BDCs can now buy a maximum of $25,000 per week from only one Authorised Dealer Bank (ADB).
- This rule aims to reduce speculation and improve monitoring of forex transactions.
- Any BDC that violates this rule will face penalties from the CBN.
- Dealer banks must sell forex at the official Nigerian Foreign Exchange Market (NFEM) rate to ensure fair pricing.
- BDCs can only add a maximum of 1% margin to the forex price when selling to customers.
- This 1% limit applies to all forex transactions, regardless of the source.
To improve transparency, both dealer banks and BDCs must submit reports to the CBN:
- Dealer banks must report weekly forex sales to BDCs.
- BDCs must provide daily reports of forex purchases and usage.
These reports will help the CBN track forex movements and prevent illegal activities.
BDCs can only sell purchased forex for specific purposes, with a maximum of $5,000 per transaction per quarter:
- Business Travel Allowance (BTA) / Personal Travel Allowance (PTA)
- Overseas school fees
- Overseas medical fees
The CBN has warned that any dealer bank or BDC that violates these guidelines—such as diverting forex or exceeding the limits—will face severe penalties, including the suspension of their license.
These new rules are part of the CBN’s efforts to stabilize the forex market and ensure fair access to foreign currency.
