CBN introduces new FX guidelines for BDCs, sets weekly purchase limit

The Central Bank of Nigeria (CBN) has issued new regulatory guidelines allowing Bureau de Change (BDC) operators to purchase up to $25,000 weekly from Authorised Dealer Banks (ADBs) to meet retail forex demand for eligible invisible transactions.

The new directive, detailed in a circular from the Trade and Exchange Department, also introduces compliance measures aimed at promoting transparency and curbing potential forex misuse.

The circular, dated February 5, 2025, was signed by Dr. W. J. Kanya, Acting Director of the Trade & Exchange Department at the CBN. Under the revised regulations, BDCs are required to source their allotted forex from a single authorised dealer bank per week.

This measure seeks to prevent speculative trading and enhance regulatory oversight. Violations of this restriction will attract appropriate sanctions from the apex bank.

According to the new guideline, BDCs must procure their weekly forex allocation from only one authorised dealer bank;  Authorised dealer banks must sell forex to BDCs at the prevailing rate in the Nigerian Foreign Exchange Market (NFEM) window to ensure uniform pricing.

READ ALSO: CBN extends BDCs’ FX access deadline to May 30, 2025, amid market volatility

The CBN has set a 1% cap on the margin BDCs can charge end-users above the purchase price to prevent excessive charges and promote a fairer forex market.

Mandatory Reporting: Authorised dealers are required to submit weekly reports on forex sales to BDCs in a specified Excel format to the CBN’s Trade and Exchange Department via [email protected].

BDCs must render daily returns on forex purchases and sales through the Financial Institutions Forex Reporting System (FIFX).

These measures are intended to enhance transparency and allow the CBN to monitor forex flows while curbing illicit currency activities.

BDC operators can only disburse foreign exchange for specific transactions, with a maximum limit of $5,000 per transaction per quarter. The eligible transactions include:

To further combat financial crimes, the CBN has reinforced strict anti-money laundering (AML) regulations. BDCs are required to:

The CBN has warned that any violation of these guidelines—such as forex diversion—by an Authorised Dealer Bank or a BDC will attract severe penalties, including the suspension of operating licenses.

In a related development, the CBN has extended the deadline for BDC operators to access the Nigerian Foreign Exchange Market (NFEM) for weekly FX purchases. Originally set for January 31, 2025, the new deadline has been extended to May 30, 2025. The extension is expected to improve liquidity in the forex market, stabilise the parallel market, and ensure continued regulatory oversight.

The latest move by the CBN is part of a broader strategy to manage forex supply, stabilise the naira, and mitigate speculative activities in the currency market. The apex bank remains committed to implementing measures that will foster a more transparent and efficient forex market in Nigeria.