CBN Resumes FX Sales to BDCs to Boost Market Liquidity

The Central Bank of Nigeria (CBN) has taken steps to sustain liquidity in the foreign exchange (FX) market by allowing licensed Bureau de Change (BDC) operators to purchase $150,000 weekly. This initiative aims to enhance market liquidity and ensure the smooth functioning of the currency market while managing volatility to stabilize the economy.

The CBN emphasizes strict compliance with operational guidelines, requiring BDCs to conduct full Know Your Customer (KYC) checks and submit timely electronic returns. The CBN has previously suspended FX sales to BDCs to curb speculation and address allegations of corruption and money laundering.

However, under the leadership of Governor Olayemi Cardoso, the CBN has recalibrated its policies to recognize the role of BDCs in deepening liquidity in the retail FX market. The new policy is expected to support the naira against external pressures and attract foreign direct investment, crucial for economic stability and job creation.