The Central Bank of Nigeria has instructed Bureau de Change operators and Authorised Dealer Banks to limit their weekly FX purchases to $25,000, as outlined in a newly released guideline, SAVANNAH NEWSNOW REPORTS
The central bank’s guideline states that this move will enable operators and ADBs to satisfy the retail market’s demand, while WJ Kanya, acting director of trade and exchange, outlined the requirements for compliance to ensure transparency and prevent FX misuse.
With the new CBN guidelines, BDCs will source forex from a single ADB weekly to prevent speculative activities and ensure proper oversight.
“Authorised dealers must submit weekly reports of their forex sales to BDCs in a specified Excel format to the CBN Trade and Exchange Department via teddmo@cbn.gov.ng. BDCs must render daily returns on forex purchases and sales (utilisation) through the Financial Institutions Forex Reporting System (FIFX).
“These measures will help the CBN track forex flows and prevent illicit activities in the currency market,” the CBN stated.
According to the CBN, the operators are only allowed to disburse forex for a maximum of $5,000 per quarterly transaction, which covers Business Travel Allowance (BTA)/Personal Travel Allowance (PTA), Overseas school fees, and Overseas medical fees.
