CBN Sets Transaction Limit for BDCs When Selling Dollars to Nigerians As Naira Falls to New Low

• The Central Bank of Nigeria has capped cash sales by bureau de change operators at $5,000 per transaction
• The apex bank also set guidelines for BDCs when sourcing funds and stressed that origins are properly identified
• Travellers entering or leaving Nigeria must also make a declaration on the amount of cash with them not exceeding $10,000

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria (CBN) has imposed a transaction limit on Bureau de Change (BDC) operators, capping single foreign exchange cash sales at $5,000.

The apex bank stated this is part of the CBN’s Monetary, credit, foreign trade, and exchange policy guidelines for the fiscal years 2024/2025.

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The guideline aims at promoting stability and compliance within the foreign exchange market.

In the guideline, the CBN limit restricts the amount of foreign currency that customers can obtain in cash from BDCs at one time, helping to manage foreign exchange reserves and reduce the potential misuse of foreign currency.

Cash transactions for travellers

Punch reports that additionally, BDCs are permitted to pool funds, allowing them to combine foreign exchange purchased from the CBN with other sourced funds, provided the origins are properly identified and reported.

This promotes transparency in foreign exchange transactions.

Furthermore, travellers entering or leaving Nigeria must declare amounts exceeding N100,000 or $10,000 at borders, enhancing transparency in currency movements for statistical purposes.

This declaration process will use specific Travel Import and Travel Export forms.

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The president of the Association of Bureau de Change Operators of Nigeria, Alhaji Aminu Gwadabe, has reacted to the transaction limit for BDCs

He said:

“The central bank is just advising us to abide by the guideline. We were aware of the $5,000 per transaction limit."

CBN introduces rDAS system to crash the dollar

Earlier, Legit.ng reported that the CBN announced plans to begin the Retail Dutch Auction System (rDAS).

The bank asked all dealer banks to provide it with legitimate forex demands with which to conduct the transactions.

The apex bank disclosed that it is reintroducing the system due to banks’ growing demand for Forex.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng