By Nse Anthony-Uko
The Central Bank of Nigeria, today approved banks’ sale of US$30,000 to each Bureau De Change (BDC) operator per week from foreign exchange accruing from inward money remittances.
The CBN, in a circular on its website today, said that a BDC is to nominate it’s preferred deposit money bank and can only procure the said amount from only that bank in a week.
The apex bank, in the circular titled “Sale of Foreign Currency Proceeds of International Money Transfers to Bureau De Change Operators” and signed by Acting Director, Trade and Exchange Department, W D. Gotring, said the selling rate by authorised dealers to BDCs shall be the buying rate from IMTO plus a margin not exceeding 1.5 per cent.
Also, foreign exchange cash purchased by BDCs from authorised dealers shall be sold to foreign exchange end users at a rate not exceeding 2.0 per cent margin above the buying rate.
“For the avoidance of doubt, the two per cent margin stated above shall be applicable to all funds to be retailed by BDCs regardless of sources of fund,” the apex bank said adding that authorised dealers shall continue to render weekly returns on sales to BDCs while the BDCs shall also continue to render weekly returns on purchases from authorised dealers.
The apex bank also explained that funds purchased by BDCs shall be disbursed for eligible transactions only and these include business travel allowance/personal travel allowance, overseas school fees and overseas medical fees, which in all cases the maximum disbursement shall not exceed US$5,000.
According to the CBN, the above requirements are in addition to earlier ones contained in an earlier circular TED/FEM/FPC/GEN/01/004 dated July 22, 2016, which granted approval to authorised dealers who are agents of approved International Money Transfer Operators (IMTSO) to sell foreign currency accruing from inward money remittances to licensed BDCs.
Other guidelines as released by the CBN today include that “records shall be maintained for all transactions by the BDCs showing the BVN of the end user, including endorsement of the amount disbursed In the international passport of the beneficiary. Also, IMTSOs shall continue to render weekly returns on their operations with agent banks directly to the CBN in the specified format.
The CBN warned that any authorised dealers and BDCs that diverts funds or violates the provision of the guidelines shall attract appropriate sanctions including suspension of dealership.
The apex bank also said that all BDCs are required to render weekly returns on foreign exchange purchases from authorised dealers and other sources to the CBN.