CBN Caps Weekly Forex Sales to BDCs at $25,000 to Curb Misuse 

The Central Bank of Nigeria (CBN) has introduced new regulations limiting Bureau de Change (BDC) operators to sourcing a maximum of $25,000 in foreign exchange per week from a single authorised dealer bank.

The directive, outlined in a circular signed by Dr. W. J. Kanya, Acting Director of the Trade & Exchange Department, aims to strengthen forex management and protect the retail market.

Under the new rules, each BDC must select one authorised dealer bank (ADB) per week for forex procurement.

“Authorised dealers shall sell foreign exchange cash to BDCs subject to a maximum of USD25,000.00 to a BDC per week,” the circular states, warning that violations will attract sanctions.

The measure is intended to curb multiple bank transactions for forex allocations, reducing the risk of forex misuse.

To ensure transparency, the CBN mandates that forex sales to BDCs must be conducted at the prevailing rate in the Nigerian Foreign Exchange Market (NFEM) window. Additionally, BDCs can charge end-users a maximum one per cent margin above their purchase rate.

BDCs and authorised dealer banks must comply with stringent reporting requirements. ADBs are required to submit weekly reports on forex sales to the CBN’s Trade and Exchange Department, while BDCs must provide daily returns via the Financial Institutions Forex Reporting System.

The circular also limits individual end-users to $5,000 per quarter, covering transactions such as business and personal travel allowances, overseas school fees, and medical expenses.

As part of its anti-money laundering (AML) drive, the CBN has mandated BDCs to maintain detailed transaction records, including customers’ Bank Verification Numbers (BVN) and passport endorsements of disbursed amounts.

The apex bank emphasised strict adherence to AML laws and Know Your Customer (KYC) requirements, cautioning that any breach by ADBs or BDCs could result in severe sanctions, including licence suspension.