The Central Bank of Nigeria (CBN) has authorised licensed Bureau De Change (BDC) operators to resume participation in the Nigerian Foreign Exchange Market (NFEM) as part of efforts to improve liquidity and access to foreign exchange in the retail segment.
The approval was conveyed in a circular signed by the Director of the Trade and Exchange Department, Dr. Musa Nakorji. According to the directive, each licensed BDC is permitted to purchase up to $150,000 weekly, subject to compliance with existing operational guidelines.
Under the new arrangement, BDCs may obtain foreign exchange from any authorised dealer bank at prevailing market rates. The CBN said the move is intended to enhance market efficiency and broaden access to forex across the economy.
However, the apex bank introduced strict compliance and risk management measures. Authorised dealers must carry out thorough Know-Your-Customer (KYC) and due diligence checks before processing any FX transactions for BDCs.
To promote transparency and accountability, all licensed BDCs are required to submit accurate and timely electronic returns in line with current regulations. Any foreign exchange not utilised must be resold to the market within 24 hours, as BDCs are barred from holding FX positions sourced from the NFEM.
The circular also places limits on settlement procedures. All transactions must be conducted through settlement accounts with licensed financial institutions. Third-party deals are prohibited, while cash settlements are restricted to no more than 25 per cent of each transaction.
The CBN said the measures are part of its broader strategy to strike a balance between improving market access and maintaining strong regulatory oversight, while safeguarding the stability of the financial system.
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