CBN Threatens to Suspend Dealership Licence of Access, Zenith, BDCs, Other FX Traders, Gives Reasons
- The Central Bank of Nigeria (CBN) has warned banks and Bureau de Change (BDC) operators of severe sanctions if they violate its FX trade rules
- CBN set the new guidelines after allowing BDCs to access weekly FX in the official foreign exchange market
- The apex bank set the FX cash purchases by BDCs from dealer banks at a rate not exceeding one per cent margin
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Central Bank of Nigeria (CBN) has threatened to suspend the dealership licence of any Bureau de Change (BDC) operator or authorised dealer banks diverting funds or violating the provisions of the newly released FX trade rules.
The bank disclosed this on Wednesday, February 5, 2025, in a circular signed by its Acting Director of Trade and Exchange Department, W.J. Kanya.
Source: Twitter
CBN authorises banks to sell FX to BDCs
CBN noted that the rules were drafted after allowing BDCs to access FX purchases in the official foreign exchange market, capping it at $25,000 weekly.
Similarly, the financial sector regulator pegged the maximum disbursement per transaction in BDCs at $5,000 quarterly.
According to the circular, authorised dealers shall sell FX cash to BDCs subject to a maximum of $25,000 weekly.
The bank revealed that a BDC shall approach its preferred dealer bank and can only purchase the said amount from that bank only once a week, adding that any breach will attract appropriate sanction.
CBN sets buying, selling rates for BDCs
CBN said the selling rate would be at the prevailing rate at the Nigerian Foreign Exchange Market (NFEM).
The apex bank noted that FX cash purchases by BDCs from dealer banks shall be sold to end-users at a rate not exceeding one per cent margin above the buying rate.
The one per cent rate, CBN noted, shall apply to all funds sold on retail by BDCs regardless of sources of funds.
It mandated dealer banks to continue to render weekly returns on sales to BDCs as stated in the attached sheet format to the Trade and Exchange Department of CBN, Abuja via a designated email address.
CBN also directed all BDCs to render daily returns on foreign exchange purchases from dealer banks and other sources and sales on financial institutions' FX reporting system (FIFX).
Furthermore, funds purchased by BDCs shall be disbursed for the eligible transactions only, with each transaction not exceeding $5,000 quarterly.
CBN stated that Business Travel Allowance (BTA) and or Personal Travel Allowance (PTA), overseas school fees, and medical fees shall be maintained for all transactions by the BDCs showing the BVN of end-user, including an endorsement of the amount disbursed in the beneficiaries passport.
CBN threatens to revoke dealers’ licences
CBN warned sternly that any authorised dealer and BDC operator that diverts funds or violates the provision of the guidelines shall attract appropriate sanctions including licence suspension.
Experts have said the new move aims at strengthening the naira, which has depreciated since the beginning of February.
The naira dropped in value for four consecutive days in the official market on Wednesday, February 5, 2025, trading at N1,499 from N1,498 on Tuesday, February 4, 2025.
The development comes despite CBN’s efforts at stabilising the local currency via the launch of its FX Code.
CBN opens window to claim funds from dormant accounts
Legit.ng earlier reported that CBN)has announced that next-of-kin, beneficiaries or legal guardians can now claim funds from dormant accounts by applying to banks and other financial institutions.
A report said the new directive provides a clear path for reclaiming unclaimed balances to ensure the right owners can access funds in dormant accounts for extended periods.
Applicants must submit legal documents, proving ownership, and authorising them to make claims.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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