The Central Bank of Nigeria has introduced a digital tracking system to monitor all retail foreign exchange transactions carried out by Bureau De Change operators as part of efforts to improve transparency and strengthen oversight of the country’s foreign exchange market. Under the new framework, licensed BDCs are required to submit real time or same day data on all foreign exchange purchases through the newly introduced FX BDC Purchase Tracker portal.
In operational guidelines issued to authorised dealer banks and BDC operators, the apex bank said the platform will provide transaction level visibility from the point of purchase through bank approval to the eventual sale of foreign exchange. The system is expected to help detect irregularities, prevent market abuse and identify operators attempting to exceed the weekly purchase limit of 150,000 dollars or obtain allocations from multiple banks.
The CBN directed authorised dealer banks to conduct strict Know Your Customer checks, verify beneficial ownership and apply enhanced due diligence before selling foreign exchange to any BDC. Banks are also barred from dealing with operators that fail to meet regulatory requirements, while BDCs will be free to purchase foreign exchange from any authorised dealer bank without exclusive banking arrangements.
The guidelines further require all foreign exchange transactions to be settled only through registered accounts with licensed financial institutions, while unsold foreign exchange purchased through the Nigerian Foreign Exchange Market must be returned to the market within 24 hours after the approved utilisation period. The CBN said the measures take immediate effect and are aimed at enhancing accountability, improving market transparency and curbing abuses in the retail foreign exchange market.