CBN Approves $150,000 Weekly FX Sales to Licensed BDCs to Boost Market Liquidity
The Central Bank of Nigeria (CBN) has announced a significant policy shift aimed at deepening liquidity in the retail foreign exchange market. In a circular dated February 10, 2026, the apex bank approved licensed Bureau De Change (BDC) operators to purchase up to $150,000 weekly from the Nigerian Foreign Exchange Market (NFEM), signaling a move to narrow the persistent gap between official and parallel market rates.
The directive, signed by Dr. Musa Nakorji, Director of the Trade and Exchange Department, was addressed to authorised dealer banks and the general public. According to the CBN, the policy seeks to ensure adequate availability of foreign exchange for end users while maintaining strict regulatory oversight.
“To ensure the availability of adequate foreign exchange liquidity in the retail segment of the foreign exchange market to meet the legitimate needs of end users, all duly licensed BDCs are allowed to access foreign exchange from the NFEM through any Authorised Dealer of their choice, at the prevailing exchange rate,” the circular stated.
How the $150,000 Weekly FX Sales Will Work
The circular emphasized that authorised dealer banks must conduct thorough Know-Your-Customer (KYC) and due diligence checks before selling foreign exchange to BDC clients.
Only upon completion of these procedures can BDCs purchase foreign exchange, subject to the weekly cap of $150,000.
Additionally, the CBN imposed reporting requirements, directing all BDCs to submit timely and accurate returns electronically. The apex bank further restricted the retention of unutilized foreign exchange, requiring BDCs to sell back any surplus within 24 hours to prevent hoarding or speculative positions.
“Any unutilized balances are expected to be sold back to the market within 24 hours. BDCs are not permitted to hold funds purchased from NFEM in their positions,” the circular added.
Settlements and Compliance Rules
To maintain transparency, the CBN mandated that all BDC transactions be routed through settlement accounts with licensed financial institutions.
Third-party transactions are prohibited, and cash settlements are limited to 25% of each transaction amount.
These measures form part of a regulatory framework that blends wider market access with stringent oversight.
“Settlement of foreign exchange transactions by BDCs with Authorised Dealers and/or end-user customers shall be conducted exclusively through settlement accounts held with licensed financial institutions,” the apex bank noted.
The policy underscores the CBN’s commitment to stabilizing the naira and enhancing liquidity in the retail FX market, particularly for businesses and individuals reliant on legitimate dollar transactions.
Context and Market Implications
The policy comes after months of restrictions on BDCs, including a prior limit of $25,000 per week from a single authorised dealer. Operators had reported difficulties in sourcing dollars, often relying solely on walk-in customers, leading to market inefficiencies and widened exchange rate gaps.
Aminu Gwadebe, President of the Association of Bureau De Change Operators of Nigeria, had previously expressed concerns about the challenges faced by BDC operators under the old regime. He welcomed the CBN’s move, noting that increased access to FX would improve operational efficiency and reduce reliance on informal channels.
Industry analysts expect the $150,000 weekly FX sales cap to ease pressure on the parallel market and bring official rates closer to the street rate, which had diverged by more than N90 at times.
“The CBN’s approval for BDCs to access up to $150,000 weekly is a practical step towards bridging the gap between official and parallel rates while maintaining regulatory discipline,” said a Lagos-based FX analyst.
CBN’s Regulatory Balance
While the policy increases market access, it also ensures strict compliance through KYC, reporting, and settlement rules. This dual approach aims to enhance liquidity without undermining financial stability.
“The existing BDC guidelines continue to apply, ensuring that while liquidity is improved, regulatory standards are upheld,” the circular clarified.
The apex bank’s move is expected to have a broader impact on retail businesses, importers, and individuals who depend on BDCs for foreign exchange transactions.
Analysts believe that consistent implementation of the $150,000 weekly FX sales policy could signal a more predictable and stable FX environment in 2026.
