Latest CBN News & Dollar to Naira Update Today 25 February 2024 can be accessed below..
In this latest update on the Central Bank of Nigeria (CBN) and the Dollar to Naira exchange rate for today 25 feb 2024 , we delve into the significant developments affecting the Nigerian economy. From the impact of FX crises , cement prices , Fuel price, CBN Restricting Nigerians from accessing Binance, and the challenges faced by the Naira in the foreign exchange market, we cover it all.
Exchange Rate of Dollar To Naira in Black Market Today Feb 25th 2024?
Exchange Rate of Dollar To Naira in Black Market Today Feb 25th 2024?
| Dollar to Naira (USD to NGN) | Black Market Exchange Rate Today |
| Buying Rate | 1690 |
| Selling Rate | 1700 |
Latest Fuel Prices in Nigeria Today
Updated Fuel Prices in Nigeria as of February 25, 2024
Overview of Fuel Prices Across Major Cities
- Abuja: Current fuel prices are ranging from 670 to 750 Naira per liter, subject to adjustments by the Nigerian government.
- Lagos: Known as Nigeria’s trade hub, Lagos offers fuel at approximately 700 Naira per liter, varying slightly between stations.
- Port Harcourt: Fuel prices here fluctuate between 650 and 750 Naira per liter, influenced by global oil prices, exchange rates, and local market dynamics
- Benin City: Fuel prices in the major areas of Benin CIty, Edo State is between 650 and 780 Naira per liter.
CBN Releases New Guidelines for BDCs Operation, Bans Street Trading, 22 Other Activities
The Central Bank of Nigeria (CBN) has unveiled a proposal for updated regulatory guidelines targeting Bureau De Change (BDC) operators, as outlined in a comprehensive 51-page document available on its official website. This initiative highlights the CBN’s effort to impose stricter controls within the foreign exchange sector by delineating a series of non-permissible activities and corresponding penalties for licensed BDC entities.
Key aspects of the proposed guidelines include a prohibition against BDCs engaging in street trading and restrictions against accepting deposits or extending loans to the public in any form of currency. Additional prohibitions extend to serving as foreign currency custodians for clients, offering foreign exchange on credit terms, and transactions involving gold or other precious commodities. In total, the CBN has listed 23 activities that BDC operators will not be permitted to undertake.
While many of these proposed restrictions align with the operational guidelines revised by the CBN for BDCs in 2015, they underscore the bank’s resolve to tighten its regulatory grip on the forex market. Furthermore, the guidelines outline permissible activities for BDCs, such as acquiring foreign exchange from sanctioned sources, conducting sales in accordance with CBN directives, and functioning as payout locations for International Money Transfer Operators (IMTOs), as reported by Punch.
The document also mandates individuals selling foreign exchange exceeding $10,000 to BDCs to disclose the origin of the funds and adhere to all regulations related to Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Countering Proliferation Financing (CPF).
Moreover, the CBN proposes a restriction on cash payments to customers for forex transactions exceeding $500, recommending that payments for such transactions be made via transfers to the customer’s Naira bank account. For non-resident customers, whether Nigerian or not, BDCs are instructed to issue prepaid NGN cards, subject to maximum credit and cumulative limits in compliance with Know Your Customer (KYC) standards.
Violations of these guidelines by BDC operators could result in severe penalties, including the revocation of licenses, as indicated by the CBN.
In a related development, the CBN has also implemented a ban on cash withdrawals from accounts involved in virtual and digital asset transactions. Detailed in a document titled ‘Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers’ posted on the CBN website, this policy specifies that accounts opened for virtual assets must solely be used for transactions related to virtual/digital assets and are prohibited from serving any other purpose.
CBN Imposes New Capital Requirement on Currency Traders in Nigeria, Limits FX Cash Purchases
The Central Bank of Nigeria (CBN) has announced plans to revise the capital requirements for Bureau de Change (BDC) operators in Nigeria, significantly increasing the financial threshold needed for Tier 1 and Tier 2 licenses. This move aims to strengthen the regulatory framework and enhance the operational standards within the forex exchange sector.
New Capital Requirements for BDC Operators
- Tier 1 License: A minimum share capital of N2 billion is required, alongside a mandatory caution deposit of N200 million. The application and license fees are set at N1 million and N5 million, respectively. Tier-1 BDCs are granted national operational scope, with the capability to establish branches and appoint franchisees upon CBN approval.
- Tier 2 License: Operators must possess a minimum share capital of N500 million and a mandatory caution deposit of N50 million. The application fee for Tier-2 licenses is N250,000, with a license fee of N2 million.
These updated guidelines mark a significant change from the previous unified requirement of N35 million for general licenses. The CBN has yet to announce the effective date for these new regulations, which were detailed in the Exposure draft of the Revised Regulatory Supervisory Guidelines for Bureau De Change operations in Nigeria.
Implications and Additional Guidelines
The revised guidelines not only redefine licensing requirements but also update corporate governance, Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) provisions, and set new standards for record-keeping and reporting among BDCs.
Furthermore, the CBN is considering measures to eliminate street trading by BDC operators and enforce a cap on cash transactions for forex sales, setting a minimum threshold of $500 for cash transfer payments. The new rules also stipulate that BDC operators must source forex from approved channels and adhere to CBN’s forex sales policies.
Enforcement and Compliance
In line with enforcing compliance with the new regulatory framework, the CBN has announced that BDC licenses will be subject to annual renewal, contingent upon adherence to applicable laws and regulations.
Crackdown on Illegal Forex Activities
In a related crackdown on illegal forex activities, the Economic and Financial Crimes Commission (EFCC), in collaboration with various law enforcement agencies, arrested 115 suspected currency racketeers in Enugu state. This operation targeted individuals engaged in unauthorized foreign exchange activities, highlighting the regulatory bodies’ commitment to stabilizing the currency market and curbing financial crimes.
This comprehensive overhaul of the regulatory guidelines for BDC operators signifies the CBN’s intent to tighten control over the forex market, aiming to ensure stability, transparency, and compliance within the sector.