The Central Bank of Nigeria (CBN) has issued new guidelines restricting Bureau de Change (BDC) operators to the purchase of foreign exchange from a single authorised dealer per week.
The bank also directed the BDCs to comply with Know Your Customer (KYC) measures.
The apex bank in a circular signed by the Acting Director of Trade and Exchange Department, W. J. Kanya, mandated a weekly purchase cap of $25,000 per BDC from authorised dealers.
The circular was seen by journalists on Wednesday.
It read: “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 selling rate by the Authorised Dealers to BDCs shall be the prevailing day rate at the NFEM window.”
CBN permitted FX cash purchased by BDCs from authorised dealer banks to be sold to end-users at a rate not exceeding one percent margin above the buying rate.
The apex bank said the one percent margin shall apply to all funds to be retailed by BDCs regardless of sources of funds.
It also mandated authorised dealer banks to render weekly returns on sales to BDCs in a specified format attached to the guidelines to be addressed to the apex bank.
The CBN urged all BDCs to render daily returns on FX purchases from authorised dealer banks and other sources as well as sales on the Financial Institutions Forex Reporting System (FIFX).
It further directed that funds purchased by BDCs be disbursed for specific transactions including Business Travel Allowance/Personal Travel Allowance; Overseas School fees and Overseas Medical fees.
The apex bank insisted that in all cases the maximum disbursement per transaction should not exceed $5,000 quarterly.
