CBN Introduces New Guidelines for BDC Operations

The Central Bank of Nigeria (CBN) has released a circular titled "Participation License for Bureau de Change (BDC) in the Nigerian Foreign Exchange Market," which outlines new guidelines for BDC operations. These guidelines permit BDCs to access up to $150,000 weekly in the Nigerian Foreign Exchange Market (NFEM).

Dr. Musa Narkoji, Director of the Trade Exchange Department, emphasized that the CBN aims to boost retail dollar liquidity without reopening past distortions.

The guidelines ensure that foreign exchange is available to meet the legitimate needs of end users, including travel, tuition, and medical expenses. BDCs are not allowed to keep funds purchased from NFEM and must return unutilized balances to the market within 24 hours.

The CBN has implemented stricter oversight and mandates that at least 75% of transactions be settled through licensed financial institutions, thereby tightening control over cash transactions. The new framework seeks to reshape retail foreign exchange dynamics while preventing speculative hoarding.