CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500
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The Central Bank of Nigeria (CBN) is considering limiting the cash payment for buying and selling foreign currencies by Bureau De Change (BDC) operators to a maximum of $500 and ensure payments above the stipulated figure is done digitally.
The apex bank disclosed this in its proposed revised regulatory guidelines for BDC operators in Nigeria published by the bank where it proposed that electronic transfer/purchase of foreign currencies are to be made to BDCs naira account.
It stated, “Payments to customers for cash purchases of foreign currency, the equivalent of above USD500, shall be by transfer to the customer’s Naira bank account. If the customer is non- resident (whether Nigerian or not), a BDC shall issue the customer a prepaid NGN card.
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Where such a card is issued, relevant maximum credit and cumulative limits, in line with relevant Know Your Customer requirements, shall apply.”
“Payments to customers for cash purchases of foreign currency of the equivalent of USD500 and below may be made in cash.”
According to the bank, permissible activities by BDCs include; acquisition of forex from approved sources, sales of FX in line with its guidelines, serve as cashout points for IMTOs etc.
On the other hand, the apex bank prevented BDC from engaging in street trading, account maintenance, accepting deposits and granting of loans, facilitating international outward transfers, dealing in precious stones and metals, establishing subsidiaries and others.
