CBN Limits BDCs' Weekly Dollar Purchases to $150,000 to Boost Forex Liquidity

The Central Bank of Nigeria (CBN) has directed Bureau De Change operators to limit their weekly dollar purchases to $150,000, as part of broader strategies to enhance dollar liquidity in the retail segment of the market. The circular, signed by Dr. Musa Nakorji of the CBN's Trade and Exchange Department, aims to ensure that individuals and small businesses have better access to legitimate foreign exchange needs.

This move signifies a significant shift from previous restrictions, allowing licensed BDCs to source foreign currency from authorized dealers at prevailing market rates. The new framework is designed to deepen market efficiency, enhance transparency, and strengthen the overall functioning of the foreign exchange system.

BDCs are now permitted to build direct relationships with the official market to bridge the supply gap in the retail segment for various legitimate needs such as travel expenses, school fees, medical bills, and small-scale business transactions. The CBN emphasizes the importance of conducting comprehensive Know Your Customer (KYC) due diligence checks to ensure compliance with regulations and enhance market liquidity.