CBN Introduces New Operational Guideline for Bureau De Change Operations in Nigeria. Read the Details below.
With the objective of boosting the operational effectiveness of the Nigerian Foreign Exchange Market, the Central Bank of Nigeria (CBN) has introduced a series of operational adjustments for the Bureau De Change (BDC) sector.
The declaration, disclosed on August 17, 2023, presents essential measures designed to streamline and enhance BDC operations.
According to the new structure, the range for the margin between buying and selling rates for BDC operators will be limited to a permissible spectrum of -2.5% to +2.5% of the previous day’s weighted average rate in the Nigerian Foreign Exchange market.
This strategic step is projected to bring more stability and transparency to the fluctuations in exchange rates, ultimately delivering advantages to both BDC operators and the general populace.
Another notable modification is the obligatory submission of periodic financial reports by BDC operators.
These reports, comprising daily, weekly, monthly, quarterly, and yearly renditions, are to be channeled through the upgraded Financial Institution Forex Rendition System (FIFX), customized to fulfill the unique prerequisites of each operator.
This alteration is intended to enhance supervision and ensure that the BDC sector conducts its affairs with heightened responsibility.
The circular also underscores that any failure to submit accurate reports within the stipulated timeframe will lead to penalties, potentially resulting in the revocation of operational licenses.
Even in situations where BDC operators have not executed any transactions during a specific period, they are still obligated to provide nil reports, thus fostering a culture of adherence and meticulous record-keeping.
It is strongly advised that all BDC operators and the public acquaint themselves with these novel directives and adhere to them conscientiously.
Through the implementation of these measures, the Central Bank of Nigeria envisions a more resilient and well-regulated BDC segment that harmonizes with broader initiatives to augment the efficiency of Nigeria’s foreign exchange market.
Implications of these Changes:
Significantly altering the landscape, this development heralds the return of BDCs to the nation’s foreign exchange market.
This move marks a departure from earlier policies, including those instituted during the tenure of former CBN Governor Godwin Emefiele, which temporarily excluded BDC operators from participating in the market.
The new policy underscores a concerted endeavor by the central bank to reestablish connections with BDC operators and reintegrate them into the framework of the foreign exchange landscape.
