CBN Makes Fresh Forex Changes, Announces Weekly Dollar Purchase Cap for BDCs
- The CBN reinstated the foreign exchange purchase limit for Bureau De Change operators under a new regulatory framework
- The CBN has also introduced the FX BDC purchase tracker platform to allow real-time monitoring of dollar transactions
- BDC operators who leave purchased forex unused face sanctions, including forfeiture of funds and suspension of access to the official forex market
The Central Bank of Nigeria (CBN) has maintained its $150,000 weekly foreign exchange purchase ceiling for Bureau De Change (BDC) operators, publishing new operational guidelines that govern how licensed BDCs can access dollars through authorised dealer banks in the Nigerian Foreign Exchange Market (NFEM).
The regulatory guidance, addressed to authorised dealer banks and licensed BDC operators, details the procedures for implementing a February 10, 2026 circular that restored BDC access to the official foreign exchange market.
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How the New Framework Works
According to the CBN in its latest circular released on Thursday, July 16, each licensed BDC may purchase up to $150,000 per week from any authorised dealer bank of its choosing, and operators are permitted to split that allocation across multiple purchase requests within the same week, so long as the combined total stays within the prescribed cap.
To support real-time oversight, the CBN has launched the FX BDC Purchase Tracker (FXBT), an electronic platform through which BDCs can submit purchase requests while allowing the apex bank to monitor transactions as they occur. Authorised dealer banks are required to acknowledge each request within two business hours and communicate approval or rejection decisions through the portal.
Where a request is declined, banks must state clear reasons, which may include incomplete Know-Your-Customer (KYC) documentation, exhaustion of a BDC's weekly allocation at another bank, unresolved compliance issues, or internal risk assessments.
The CBN explicitly prohibited authorised dealer banks from imposing exclusivity arrangements or charging referral fees that restrict BDCs from selecting their preferred banking partners, Punch reports.
Compliance Rules and Penalties
Only BDCs holding valid licences are eligible to participate. Operators currently under regulatory sanctions or with suspended licences remain excluded until those restrictions are formally lifted.
Before processing any foreign exchange transaction, banks must carry out comprehensive due diligence on BDCs, verifying their licence status, Corporate Affairs Commission (CAC) registration documents, Tax Identification Number (TIN), beneficial ownership information and details of principal officers.
All foreign exchange purchased under the framework must be credited directly into the BDC's registered foreign exchange settlement account. Transfers to third-party accounts are classified as regulatory violations.
Additionally, any forex purchased from the NFEM that remains unused must be returned to the market within 24 hours after the utilisation period ends. BDCs that fail to do so risk forfeiture of the unutilised balance and suspension of their NFEM access.
The guidelines further require BDCs to declare any leftover foreign exchange from the previous week when submitting new purchase requests, with banks expected to account for those balances when calculating weekly allocations.
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BDC operators must also continue filling electronic returns covering weekly forex purchases, sales to end users, settlement methods and unused balances.
The CBN warned that breaches of the new rules could result in monetary fines, licence withdrawal, revocation of authorised dealer status for implicated banks, and referrals to law enforcement where criminal conduct is suspected.
The apex bank said the framework is designed to improve transparency, strengthen market liquidity, and bring greater order to the retail segment of Nigeria's foreign exchange market.
CBN explains naira exchange rate movements
Earlier, Legit.ng reported that the CBN has explained that recent movements in the naira's exchange rate are being driven by market forces rather than direct intervention by the apex bank.
CBN Governor Olayemi Cardoso said the bank's intervention in the foreign exchange market accounts for only about 1.2% to 1.3% of total market turnover, stressing that such a small share cannot determine the value of the naira.
He attributed the currency's relative stability to ongoing foreign exchange reforms, improved market transparency, stronger liquidity, and increased investor confidence, while dismissing claims that the CBN is using external reserves to artificially support the local currency.
Source: Legit.ng
