CBN Grants BDCs Weekly Access to $150,000 in Foreign Exchange

By 𝔸bdulrazak Tomiwa

The Central Bank of Nigeria has authorized licensed Bureau De Change (BDC) operators to purchase up to $150,000 weekly.

This new directive aims to boost retail liquidity and ensure legitimate users can access foreign currency more easily through formal channels.

This policy is designed to narrow the widening gap between official and parallel market rates, which recently hit a three-year high. By reintegrating BDCs into the official market, the CBN intends to stabilize the Naira and curb speculative hoarding.

BDCs can now source dollars from any authorized dealer bank at prevailing market rates. However, banks are required to perform strict “Know Your Customer” (KYC) checks and due diligence on all BDC clients before processing these sales.

To maintain transparency, the CBN mandated that any unspent funds be returned to the market within 24 hours. Additionally, all transactions must go through official settlement accounts, with cash payments restricted to 25% of the total value.

Regarding the move to improve retail access, the CBN stated, “To ensure the availability of adequate foreign exchange liquidity in the retail segment of the foreign exchange market to meet the legitimate needs of end users, this is to inform market participants that all BDCs that are duly licensed by the CBN are allowed to access foreign exchange from the NFEM through any Authorised Dealer of their choice, at the prevailing exchange rate.”

This decision reverses previous restrictions that had limited BDC access to official foreign exchange. Industry leaders have welcomed the shift, expecting it to provide much-needed stability to the retail foreign exchange market.