CBN Restricts Dollar Acquisition From BDCs: $5000 for Medical Costs and $10000 for School Fees

CBN Restricts Dollar Acquisition From BDCs: $5000 for Medical Costs and $10000 for School Fees

Bureau De Change (BDC) operators’ sales of Foreign Exchange (FX) are subject to limitations set by the Central Bank of Nigeria (CBN).

In a document titled “Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria,” the apex revealed the decision on February 23, 2024.

The circular states that BDCs may sell foreign currency to an individual once every six months in the amount of $4,000 and $5,000 for personal travel allowance (PTA) or business travel allowance (BTA), respectively.

The CBN stated that in order to sell foreign currency to intended travellers, they must provide their Tax Identification Number (TIN) or Bank Verification Number (BVN), a properly filled out electronic form, a valid international passport, a valid visa, and a valid international return ticket.

Additionally, the apex bank stated that clients must submit a document of company registration or incorporation and a letter of request from the corporate body specifying the purpose of the visit written to the processing BDC in order to be eligible for BTA.

Additionally, the CBN required that clients produce a tax clearance certificate and a letter of invitation from their foreign business partner.

The passport must include an endorsement stating the date of sale and the amount of foreign cash sold. The BDC is required to file copies of each document, sales receipt, and currency endorsement page in the correct order, according to CBN.

“FOR MEDICAL BILLS, $5,000”

A client may purchase foreign currency from BDCs for up to $5,000 in order to pay for medical expenses once a year, according to the CBN.

According to the CBN, this bill would be moved from the BDC’s domiciliary account held with a Nigerian bank.

The apex bank stated, “It must be paid directly to the hospital and accompanied by a valid international passport, a duly completed e-Form A, a letter of recommendation from a specialist physician, or a specialist hospital in Nigeria.”

The financial regulator has highlighted additional required documents, which include a valid airline ticket and a letter from the foreign specialist doctor outlining the treatment cost.

The apex bank states that BDCs are allowed to offer Foreign money to customers for school tuition up to $10,000 per year.

“This amount, to be transferred from the BDC’s domiciliary account with a Nigerian bank, will be paid directly to the school and will be accompanied by the following documentation: a properly filled-out e-Form A, proof of admission or course enrollment, a valid airline ticket, a letter from the overseas specialist doctor outlining the treatment costs, and an invoice or bill from the school,” CBN stated.

The apex bank stated, “It must be paid directly to the hospital and accompanied by a valid international passport, a duly completed e-Form A, a letter of recommendation from a specialist physician, or a specialist hospital in Nigeria.”

The financial regulator has highlighted additional required documents, which include a valid airline ticket and a letter from the foreign specialist doctor outlining the treatment cost.

The apex bank states that BDCs are allowed to offer foreign money to customers for school tuition up to $10,000 per year.

“This amount, to be transferred from the BDC’s domiciliary account with a Nigerian bank, will be paid directly to the school and will be accompanied by the following documentation: a properly filled-out e-Form A, proof of admission or course enrollment, a valid airline ticket, a letter from the overseas specialist doctor outlining the treatment costs, and an invoice or bill from the school,” CBN stated.

“For post-graduate studies, a photocopy of the first-degree certificate or a certified true copy of the awarding institution’s statement of results, or its equivalent.”

“The CBN may periodically review the amounts and frequencies for foreign exchange sales.”

According to the CBN, a recipient of a foreign exchange sale may get up to 25% of the proceeds in cash. The remaining 75% of the proceeds would be sent to the buyer electronically (to the buyer’s Nigerian domiciliary account or prepaid travel card).

Credit: Allschoolabs, Nairaland