CBN Limits Weekly BDC Purchases to $150,000
The Central Bank of Nigeria has rolled out strict new rules for retail currency dealers. A fresh circular caps weekly foreign exchange purchases for bureau de change operators at $150,000. Regulators want to curb speculation and bring order to a volatile parallel market. The policy bans dealers from using third-party accounts to access these funds. Firms must process all transactions through dedicated settlement accounts registered directly with the central bank.
To enforce compliance, the regulator has introduced a digital tracking system. The Foreign Exchange BDC Purchase Tracker will monitor transactions in real time. Currency dealers must log onto this platform to submit purchase requests and record sales. They must also register the details of every dollar sold to end-users on the same day. Any currency left unsold at the end of the day must go back to the official market within 24 hours.
The central bank is leveraging commercial banks to police the new regime. Banks must conduct rigorous background checks on all currency dealers before selling them foreign cash. These checks include verifying tax certificates, corporate registration, and beneficial ownership. The circular demands yearly audits of these records to flag high-risk operators. Banks must run deeper checks on suspicious clients or refuse to do business with them entirely.
The trade department director, Aderinola Shonekan, warned that violators face severe penalties. The regulator will suspend errant dealers from the official market or revoke their operational licences. Commercial banks that fail to police their clients risk losing their authorised foreign exchange dealer status. These rules build on earlier directives that allowed dealers to buy currency directly from the official market. The state insists that previous guidelines to curb market manipulation remain fully in force.
The retail currency market has long been a source of headaches for monetary authorities. Speculative buying frequently drives down the value of the local currency on the street. By restricting supply and tracking every transaction, the regulator hopes to eliminate hidden middlemen. The new tracking system targets retail buyers seeking cash for school fees, travel, and medical bills. Officials hope these measures will stabilize the naira and restore sanity to retail trading.