Overview

This document provides updated guidelines for Bureau De Change (BDC) operators in Nigeria on purchasing foreign exchange (FX) through Authorised Dealer Banks (ADBs) in the Nigerian Foreign Exchange Market (NFEM). Issued by the Central Bank of Nigeria (CBN), it supersedes previous directives (TED/FEM/PUB/C/001/001 and TED/FEM/PUB/C/001/003). The key provisions include: (1) BDCs can purchase FX from ADBs at a rate not exceeding the previous day's NFEM weighted average rate; (2) BDCs must sell to end-users at a spread not exceeding 1% above the purchase price; (3) only cash or travelers' cheques can be sold, not other instruments; (4) eligible transactions include personal travel allowances, business travel allowances, medicals, and school fees (max $4,000 per quarter per individual); (5) BDCs must render monthly returns to the CBN within five working days; (6) compliance with anti-money laundering and KYC regulations is mandatory; (7) ADBs must ensure BDCs have adequate Naira funding before FX is released; (8) BDCs must hold open position limits of 0.5% of their shareholders' funds unimpaired by losses; (9) FX purchase limits per BDC are based on their capital base and past performance; (10) all BDC operations must be electronic and integrated with CBN systems; (11) foreign currencies must be used for eligible transactions only; (12) any violation attracts sanctions including suspension or revocation of license. The document references the BDC Guidelines (2015) and other CBN circulars. Effective immediately.

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