By David Akinmola
The Central Bank of Nigeria (CBN) has approved the re-entry of Bureau De Change (BDC) operators into the official foreign exchange market, allowing them to access up to $150,000 weekly to meet retail demand for foreign currency.
The move is aimed at improving liquidity in the retail end of the FX market, narrowing the gap between official and parallel market rates, and easing pressure on individuals seeking forex for legitimate personal and business transactions.
Under the new arrangement, each licensed BDC will be permitted to purchase up to $150,000 per week from authorised dealer banks at the prevailing market rate. The CBN said the measure forms part of its broader strategy to deepen market transparency, enhance price discovery and stabilise the naira.
Industry analysts say the decision could help curb speculative activities in the parallel market by increasing the supply of foreign currency through regulated channels. By bringing BDCs back into the formal window, the apex bank is also seeking to restore their role as retail FX intermediaries, particularly for travel allowances, medical payments, school fees and other invisible transactions.
The CBN reiterated that strict compliance requirements would apply, including documentation standards, reporting obligations and anti-money laundering regulations. BDCs are expected to sell forex to end-users within a stipulated margin to prevent round-tripping and market abuse.
Stakeholders in the financial sector have welcomed the development, noting that improved access to official FX for BDCs could reduce volatility, boost confidence and support small-scale businesses that rely on retail foreign exchange.
The latest directive underscores the CBN’s commitment to maintaining orderly market conditions while ensuring that legitimate FX demands are met through transparent and regulated channels.
