The Central Bank of Nigeria (CBN) has directed Bureau De Change (BDC) operators to return all unutilised foreign exchange purchased from the Nigerian Foreign Exchange Market (NFEM) within 24 hours after the expiration of the approved utilisation period.
The directive was contained in the apex bank’s latest regulatory guidance on the purchase of foreign exchange by BDCs through authorised dealer banks in the NFEM.
According to the CBN, BDCs are no longer permitted to retain any foreign exchange acquired from the official market once the approved utilisation window has elapsed.
The bank warned that any foreign exchange that remains unused must be sold back into the official market within one day after the utilisation period expires.
“BDCs are not permitted to retain in their possession any foreign exchange purchased from the NFEM that remains unutilised. All unutilised balances shall be sold back to the NFEM market within twenty-four (24) hours of the expiry of the utilisation period.
“Failure to comply shall attract regulatory sanctions including but not limited to forfeiture of the unutilised balance and suspension of the BDC’s NFEM access.
“BDCs shall disclose any unutilised balance from the prior week in each new purchase request submission.
“Authorised Dealer Banks shall factor disclosed unutilised balances into their weekly cap calculations,” the CBN stated.
The apex bank explained that the new guidelines are designed to ensure the smooth implementation of the foreign exchange framework while promoting sustained liquidity in the retail segment of Nigeria’s official foreign exchange market.
As part of the new compliance measures, the CBN also prohibited third-party transactions involving foreign exchange obtained under the framework.
It directed that all foreign exchange purchased by BDCs must be credited solely to the settlement account officially registered by the licensed operator.
“Foreign exchange purchased by a BDC shall be credited only to the BDC’s registered settlement account.
“Disbursement to any account other than the BDC’s own registered account shall constitute a regulatory violation and shall be reported immediately to the CBN,” the circular stated.
The apex bank further clarified that only Bureau De Change operators with valid and active operating licences issued by the CBN would be eligible to participate in the framework.
According to the bank, operators whose licences have been suspended, restricted or are currently under regulatory sanctions will not have access to the official foreign exchange window until such restrictions are lifted.
To strengthen oversight and improve transparency, the CBN announced that it would maintain a centralised digital platform known as the FX BDC Purchase Tracker (FXBT).
The platform will require all licensed BDCs to register and submit real-time or same-day data relating to every foreign exchange purchase made under the framework.
The apex bank said the system would enable effective monitoring, compliance verification and regulatory oversight of activities within the retail foreign exchange market.
The CBN also warned authorised dealer banks against entering into exclusive arrangements with Bureau De Change operators.
It stated that banks must not impose referral fees or any conditions that restrict the ability of licensed BDCs to freely choose the financial institution through which they wish to conduct foreign exchange transactions.
According to the regulator, any form of exclusivity agreement capable of limiting competition or distorting the market would amount to a breach of its guidelines.
The apex bank emphasised that any violation of the provisions contained in the circular or the accompanying regulatory guidance would attract appropriate sanctions in line with existing foreign exchange regulations.
The new measures form part of the CBN’s ongoing efforts to improve transparency, strengthen discipline within the retail foreign exchange market and ensure that foreign exchange supplied through the official market is efficiently utilised.
