CBN Sets New BDC Forex Purchase Rules, Opens Tracking Portal

The Central Bank of Nigeria has issued new rules for Bureau de Change operators buying foreign exchange from authorised dealer banks through the Nigerian Foreign Exchange Market.

The rules introduce an electronic tracking portal and tighten how BDCs buy, use and return foreign exchange. The bank says licensed BDCs can buy from any authorised dealer bank of their choice, but banks must not force exclusive arrangements or demand referral fees.

Premium Times reported that the framework is meant to guide BDC purchases from banks through NFEM and support compliance monitoring. The report said the CBN introduced the electronic portal as part of the new operating process.

Vanguard reported that BDCs must sell any unused foreign exchange back to the NFEM market within 24 hours after the utilisation period expires. The CBN warned that failure to comply could lead to sanctions, including forfeiture of the unused balance and suspension of NFEM access.

Under the guidance, BDCs must disclose any unused balance from the previous week when making a fresh purchase request. Authorised dealer banks must also consider those unused balances when calculating weekly caps.

The CBN said only BDCs with valid licences can access foreign exchange under the framework. Operators under sanction, suspension or other restrictions will remain excluded until the CBN lifts the restriction.

The bank also barred third-party transactions. Foreign exchange bought by a BDC must be credited only to the operator’s registered settlement account, and payments to any other account will be treated as a regulatory breach.

Sources: Premium Times, Vanguard