‘Purchase $25k weekly from one bank, render returns’ — CBN issues FX guidelines for BDCs

The Central Bank of Nigeria (CBN) has introduced new regulations limiting bureau de change (BDC) operators to purchasing a maximum of $25,000 per week from a single bank.

On December 20 2024, CBN had directed the BDCs to purchase FX from banks from December 19, 2024, to January 30, 2025.

However, on Monday, CBN extended the timeframe to May 30.

In a circular on Wednesday signed by W. J. Kanya, acting director of the trade and exchange department, CBN provided guidelines for the purchase and sale of the FX.

CBN mandated that BDCs must select one bank and procure their weekly FX allocation.

“A BDC shall approach its preferred Authorised Dealer Bank (ADB) and can only procure the said amount from only that bank of its choice in a week. Any breach of this condition will attract appropriate sanction,” the circular reads.

“The selling rate by the Authorised Dealers to BDCs shall be the prevailing day rate at NFEM window.”

Additionally, the CBN mandated that FX purchased by BDCs from banks must be sold to end-users at a rate not exceeding a one percent margin above the buying rate.

According to the circular, the one percent margin shall be applicable to all funds to be retailed by BDCs regardless of sources of FX.

CBN also mandated banks to submit weekly returns on sales to BDCs, while BDC operators are required to render daily returns on FX purchases on the financial institution’s forex reporting system (FIFX).

The apex bank further directed that FX purchased by BDCs must be disbursed for business travel allowance, personal travel allowance, overseas school fees, and overseas medical fees.

CBN added in all cases the maximum disbursement per transaction should not exceed $5,000 quarterly.

“Records shall be maintained for all transactions by the BDCs showing the BVN of the end-user, including endorsement of the amount disbursed in the International Passport of the beneficiary,” the regulator said.

“It is to be noted that Authorised Dealer Banks and BDC operators shall ensure strict compliance to the provisions of Anti-Money Laundering Laws and observance of appropriate KYC principles in the handling of these transactions.”

The apex bank warned that any diversion of funds or violation of the guidelines would attract sanctions, including suspension of dealership licences.