In its bids to regulate cash sales in the foreign exchange market and to ensure stability and compliance, the Central Bank of Nigeria (CBN) has limited Bureau de Change operators’ single foreign exchange cash sales to $5,000.
Bureau de change are businesses that, in competition with other similar businesses, make their profit by buying foreign currency and then selling the same currency at a higher exchange rate.
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.”
This cap restricts the amount of foreign currency a customer can obtain in cash from any bureau de change at one time, which is part of the Central Bank of Nigeria’s broader efforts to manage foreign exchange reserves and curb the misuse of foreign currency.
The report added that the guidelines also allow for the pooling of funds, meaning that authorized dealers, including Bureau de Change, can combine foreign exchange purchased from the Central Bank of Nigeria with funds acquired from other sources, as long as the origin of the funds is properly identified and reported. This provision helps ensure transparency in the handling of foreign exchange transactions.
The Central Bank of Nigeria noted that authorized dealers must “continue to render appropriate statutory returns on sources and utilization of funds to the Central Bank of Nigeria,” ensuring accountability in foreign exchange operations across the market.
In a similar development, travelers entering or leaving Nigeria with more than N100,000 or $10,000 will be required to declare these amounts at the country’s borders. The report stated that this regulation aims to ensure transparency in currency movements and aid in statistical data collection.
The guidelines specify that any traveler with funds exceeding these limits, whether in naira or foreign currency, must declare them upon arrival or departure. This declaration is for statistical purposes and will be done using the Travel Import and Travel Export forms.
The Central Bank of Nigeria reserves the right to review these thresholds as needed. As stated in the report, “Travelers entering or leaving Nigeria shall be required to declare any amount above N100,000 and any amount over $10,000 or its equivalent.”
Additionally, the policy also limits advance payments for imports to 15% of the free-on-board value of transactions, aligning with the Public Procurement Act of 2007. The guidelines further emphasize the maximum cash sales limit for bureau de change at $5,000 per approved transaction.
Furthermore, authorized dealers are allowed to pool funds from different sources, provided the origins are identified and reported to the Central Bank of Nigeria. This regulation allows them to continue dealing in autonomous funds while ensuring accountability in foreign exchange transactions.
The policy also outlines specific guidelines on business travel allowance and personal travel allowance, capping the amounts at $5,000 and $4,000 per quarter, respectively.
“Business Travel Allowance and Personal Travel Allowance shall be subject to a maximum of $5,000 and $4,000 per quarter, respectively,” it stated.
Earlier, 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.The apex bank noted that those adjustments aimed to streamline BDC operations and enhance financial accessibility.
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