The Central Bank of Nigeria has implemented a new policy limiting bureau de change operators to a maximum cash sale of $5,000 for foreign exchange transactions.
This directive, part of the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024/2025, aims to regulate cash sales in the foreign exchange market to enhance stability and ensure compliance, according to The Punch.
Bureau de change operators, which profit by buying and selling foreign currencies at varying exchange rates, will need to adjust their operations in light of this new restriction.
The CBN’s decision reflects an ongoing effort to maintain order and transparency within Nigeria’s foreign exchange landscape.
According to the report, bureau de change operators “shall continue to observe a maximum foreign exchange cash sales limit of $5,000 per approved transaction.”
The new cap on cash sales restricts the amount of foreign currency a customer can obtain from a bureau de change at one time.
This measure is part of the Central Bank of Nigeria’s broader strategy to manage foreign exchange reserves and prevent the misuse of foreign currency.
Additionally, the guidelines permit the pooling of funds, allowing authorized dealers, including bureau de change operators, to combine foreign exchange purchased from the CBN with funds acquired from other sources.
However, the origin of these funds must be clearly identified and reported, promoting transparency in foreign exchange transactions.
The Central Bank of Nigeria noted that authorised dealers must “continue to render appropriate statutory returns on sources and utilisation of funds to the Central Bank of Nigeria,” ensuring accountability in foreign exchange operations across the market.
In a related development, travelers entering or leaving Nigeria with amounts exceeding N100,000 or $10,000 will now be required to declare these funds at the country’s borders. This regulation aims to enhance transparency in currency movements and assist in the collection of statistical data.
According to the guidelines, any traveler carrying funds above these limits, whether in naira or foreign currency, must declare the amounts upon arrival or departure. This declaration will be processed using the Travel Import and Travel Export forms, ensuring compliance and accurate record-keeping.
Additionally, the policy restricts advance payments for imports to 15 percent of the free-on-board value of transactions, aligning with the Public Procurement Act of 2007. The guidelines also reinforce the maximum cash sales limit for bureau de change operators at $5,000 per approved transaction.
Furthermore, authorized dealers can pool funds from various sources, provided that the origins are clearly identified and reported to the Central Bank of Nigeria. This regulation enables them to manage autonomous funds while ensuring accountability in foreign exchange transactions.
It was previously reported that the CBN mandated all existing BDC operators in the country to reapply for new licenses in their preferred category.
However, the BDC operators rejected the new licensing guidelines, saying it was against best global practices.
