CBN Limits BDC Forex Sales to $5,000.
The Central Bank of Nigeria has imposed a limit on the amount of foreign exchange cash sales that bureau de change operators can conduct, capping it at $5,000 per transaction. This regulation is part of a broader strategy to stabilize the foreign exchange market and ensure compliance with established guidelines.
According to the apex bank, this policy is detailed in the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024/2025. The goal is to regulate cash sales within the foreign exchange market effectively.
Bureau de change operators, which profit by buying and selling foreign currency at varying exchange rates, must adhere to this maximum cash sales limit. This restriction is intended to control the amount of foreign currency that customers can withdraw in cash from any bureau de change at a given time.
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This initiative is part of the Central Bank of Nigeria’s ongoing efforts to manage foreign exchange reserves and prevent the misuse of foreign currency. By limiting cash transactions, the bank aims to strengthen its oversight of the foreign exchange market.
Furthermore, the guidelines permit the pooling of funds, allowing authorised dealers, including bureau de change, to combine foreign exchange purchased from the Central Bank with funds sourced from other avenues. However, it is essential that the origins of these funds are clearly identified and reported to maintain transparency.
The Central Bank has emphasized that authorised dealers must continue to submit accurate statutory returns regarding the sources and use of funds. This requirement is crucial for ensuring accountability in foreign exchange operations throughout the market.
In addition, travellers entering or leaving Nigeria with amounts exceeding N100,000 or $10,000 must declare these sums at the borders. This regulation is intended to enhance transparency in currency movements and facilitate the collection of statistical data.
