CBN Approves Licensed BDCs to Access Forex, Sets $150,000 Weekly Limit

The Central Bank of Nigeria has approved the participation of licensed bureau de change operators in the foreign exchange market.

In a circular signed by the Director of the Trade and Exchange Department, Musa Nakorji, the apex bank said the decision forms part of measures to enhance liquidity in the retail segment of the FX market.

According to the circular, the CBN also fixed a weekly foreign exchange purchase limit of $150,000 for each BDC, noting that all transactions must comply with existing operational guidelines governing the sector.

“All BDCs duly licensed by the CBN are permitted to access foreign exchange through any Authorised Dealer Bank of their choice, at the prevailing market rates.

“The move aims to deepen market efficiency and ensure broader access to foreign exchange across the economy,” the circular stated.

However, the apex bank introduced strict compliance and risk management requirements to guide the transactions.

It directed authorised dealers to carry out comprehensive know-your-customer and due diligence checks on BDC clients before effecting any FX sale.

To boost transparency and accountability, the CBN instructed all licensed BDCs to render timely and accurate electronic returns in line with existing regulations.

The circular added, “Any unutilised foreign exchange must be sold back to the market within 24 hours, as BDCs are prohibited from holding FX positions purchased from the NFEM.”

The directive also places restrictions on settlement processes, mandating that all FX transactions be conducted through settlement accounts maintained with licensed financial institutions.

It further prohibited third-party transactions while limiting cash settlements to not more than 25% of the value of each transaction.

“Overall, 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,” the circular stated.