The Central Bank of Nigeria, CBN, has issued a new guidelines to BDC operators in the country which allows them to purchase as much as $25,000 weekly from a single commercial or money bank.
The guidelines, according to the Yemi Cardoso-led regulator, is aimed at preventing forex transactions abuse and promote transparency in the country.
The guidelines contained in a circular signed by CBN Acting Director, Trade and Exchange Department Dr. W. J. Kanya, the apex bank said will further its regulatory oversight, tighten the lid on fraudulent forex transactions and prevent speculation.
The CBN said in the guidelines that BDCs operators who purchase the forex must ensure that they sell directly to end users who need them for Business Travel Allowance, BTA,
Personal Travel Allowance, PTA, Overseas school fees and Overseas medical expenses.
The purchase is not expected to exceed $5000 per customer, the apex bank stated, adding that the BDCs operators must also ensured that such sale are carried out at prevailing market rate, adding that this is necessary to ensure market uniformed market price.
“Purchased FX can only be used for specific transac-tions, with a cap of $5,000 per transaction per quarter. Eligible uses include:Busi-ness Travel Allowance (BTA) / Personal Travel Allowance (PTA); Overseas school fees ;Overseas medical expenses; Strengthened Anti-Money Laundering Measures, ” the apex bank said in the circular.
It warned, however that, BDCs operators are not allowed to charged more than one percent of their purchase price, saying this is necessary to prevent profiteering, and rip-off of the end users.
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