Abuja: The Central Bank of Nigeria (CBN) has approved the participation of licensed Bureau De Change (BDC) operators in the Nigerian Foreign Exchange Market (NFEM).
According to a circular signed by the Director of the Trade and Exchange Department, Dr Musa Nakorji, the move is part of efforts to improve foreign exchange liquidity in the retail segment of the market.
The circular also caps weekly FX purchases by each BDC at $150,000 and requires compliance with existing BDC guidelines.
All CBN-licensed BDCs can access foreign exchange through any Authorised Dealer Bank they choose. These transactions will occur at prevailing market rates.
This aims to improve market efficiency and expand access to foreign exchange.
The CBN imposed strict compliance and risk-management requirements for all transactions.
Authorised dealers must conduct full Know-Your-Customer (KYC) and due diligence checks on BDC clients before any FX sale.
To strengthen transparency and accountability, the apex bank directed that all licensed BDCs submit timely, accurate electronic returns in line with extant regulations.
Any unused foreign exchange must be returned to the market within 24 hours, as BDCs may not hold FX bought from the NFEM.
All FX transactions must settle through accounts with licensed financial institutions.
Third-party transactions are prohibited, and cash settlement is limited to 25% of each transaction.
This directive reflects CBN’s strategy to balance market access with regulatory oversight, ensuring liquidity in the FX market and system integrity.