The Central Bank of Nigeria (CBN) has announced its move to peg the payment of cash dollar purchases to a customer at $500, stating that the foreign currency that exceeds this amount will be made through a transfer to their Naira bank account.
The CBN said that if a customer who wants to purchase foreign currency approaches any Bureau De Change (BDC) operators, whether they are non-residents or not, the BDC will give them a prepaid Nigerian Naira (NGN) card instead of transferring money to a bank account.
The Central Bank of Nigeria stated that the prepaid card will act as a means for non-resident customers to receive funds. However, there are limits on the amount of credit and the total amount that can be loaded onto the prepaid NGN card. The limit is placed according to the Know Your Customer (KYC) requirements, which are levels designed for customer verification and suitability.
This was announced on Friday after the CBN issued revised regulatory and supervisory guidelines for Bureau de Change operations in Nigeria. Following the release, Muda Yusuf, the Director/CEO of the Center for the Promotion of Private Enterprise, said, "The idea is to sanitise that space because a lot of malpractices are going on in the BDC ecosystem."
Read more: https://www.investingport.com/cbn-pegs-the-payment-of-cash-dollar-purchases-to-a-customer-at-500/