CBN Removes Forex Limit

The Central Bank of Nigeria, CBN, has authorised the removal of the $250,000 weekly foreign exchange sales limit placed on bureaux de change, BDC, operators in the country. The announcement came a week after Lamido Sanusi, CBN governor, vowed to address the widening gap between the naira-dollar exchange rates in the official market and parallel market. Sanusi explained that though the BDCs represented a small component of the foreign exchange market, the widening spread appeared to have led to creeping increases in core inflation.

The circular, signed by Batari Musa, director, Trade and Exchange Department, CBN, says: “Consequently, the limit of $250,000 as the weekly foreign exchange sale to a BDC is hereby removed in order to shore up liquidity in that segment of the foreign exchange market. Authorised dealers are therefore free to sell foreign exchange to BDCs subject to compliance with the provisions of extant AML/FT laws and regulations in the disburse of forex.”

Besides, all transactions between authorised dealers and BDCs as well as the latter and end-users must be supported with an appropriate documentation. In addition, Musa added that the authorised dealers and BDC operators are to continue to render weekly returns on their transactions to the CBN and other regulatory agencies, failing which appropriate sanctions, including revocation of operating licences, shall be imposed.