CBN issues new guidelines for BDCs, mandates $25,000 weekly forex purchase

DDM News

The Central Bank of Nigeria (CBN) has introduced new regulations for Bureau de Change (BDC) operators, requiring them to maintain detailed transaction records, including the Bank Verification Numbers (BVNs) of customers, and to endorse dollar sales on international passports.

These directives are designed to improve transparency, strengthen anti-money laundering measures, and enhance monitoring within the foreign exchange market.

According to a circular signed by W. J. Kanya, acting director of the Trade and Exchange Department, the CBN has set a limit of $25,000 per BDC for weekly foreign exchange purchases from authorized dealers.

“Authorized dealers shall sell foreign exchange cash to BDCs subject to a maximum of $25,000.00 to a BDC per week,” the circular stated.

Each BDC is allowed to purchase the specified amount from only one authorized dealer bank of its choice per week.

Any violation of this restriction will result in penalties, the CBN warned.

Furthermore, the CBN specified that BDCs must sell foreign exchange to customers at a rate not exceeding a 1 percent margin above the purchase price.

This applies to all foreign exchange transactions handled by BDCs, regardless of their funding source.

“Foreign exchange cash purchased by BDCs from authorized dealer banks shall be sold to foreign exchange end-users at a rate not exceeding a 1 percent margin above the buying rate,” the circular noted.

To ensure accountability, BDCs are required to submit daily reports on all foreign exchange transactions, including purchases and sales, through the Financial Institutions Forex Reporting System (FIFX).

The CBN emphasized that funds acquired by BDCs must be used strictly for permitted transactions, such as Personal Travel Allowance (PTA), Business Travel Allowance (BTA), overseas tuition fees, and international medical expenses.

The maximum allowable disbursement per transaction has been capped at $5,000 per quarter.

Additionally, the new rules mandate that all transactions include the BVN of the recipient, and the amount disbursed must be

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