Ina strategic move to boost foreign exchange liquidity in the retail segment of the market and meet the legitimate needs of end users, the Central Bank of Nigeria (CBN) has approved the participation of licensed Bureau De Change (BDC) operators in the Nigerian Foreign Exchange Market (NFEM).
The CBN has also capped the weekly FXpurchases by each BDC at USD150,000, and that utilisation comply with existing BDC operational guidelines.
In acircular signed by the Director, Trade and Exchange Department, Dr. Musa Nakorji, the apex bank directed that all duly licensed BDCs are permitted to access foreign exchange through any Authorised Dealer Bank of their choice, at the prevailing market rates.
The move, according to the circular, aims to deepen market efficiency and ensure broader access to foreign exchange across the economy.
The CBN, however, imposedstrict compliance and risk-management conditions on the transactions. Authorised dealers are required to conduct full Know-Your-Customer (KYC) and due diligence checks on BDC clients before any FX sale.
To strengthen transparency and accountability, the CBN directed that all licensed BDCs must submit timely and accurate electronic returns in line with extant regulations. Any unutilised foreign exchange must besold back to the market within 24 hours, as BDCs are prohibited from holding FX positions purchased from the NFEM.
The circular further restricts settlement practices, mandating that all FX transactions be conducted through settlement accounts with licensed financial institutions.
It said Third-party transactions are prohibited, while cash settlement islimited to a maximum of 25 per cent of each transaction amount.
The directive reflects the CBN’s broader strategy to balance market access with strong regulatory oversight, ensuring liquidity in the foreign exchange market while safeguarding financial system integrity.
