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The Central Bank of Nigeria (CBN) has announced measures to reintroduce Bureau de Change Operators in Nigeria into the foreign exchange market a few days after threatening speculators.
The bank announced its reintroduction in a circular addressed to BDCs and the public titled, ‘Operational Mechanism For Bureau De Change Operations In Nigeria.’
The development is coming amidst efforts for the naira to trade in fair value. The naira had traded around N955 per dollar on Monday before the CBN began the policy that crashed the price to N845 as of Friday.
In the new regime, the CBN said BDCs must submit periodic accounts of the activities through the Financial Institution Forex Rendition System (FIFX).
The CBN said, “In support of the drive to improve the efficiency of the Nigerian Foreign Exchange Market, the Central Bank of Nigeria hereby announces the underlisted operational mechanism for the Bureau De Change (BDC) segment of the market.
“The spread on buying and selling by BDC Operators shall be within an allowable limit of – 2.5% to +2.5% of the Nigerian Foreign Exchange market window weighted average rate of the previous day.
“Mandatory rendition by BDC Operators of the statutory periodic reports (daily, weekly, monthly, quarterly and yearly) on the Financial Institution Forex Rendition System (FIFX) which has been upgraded to meet individual Operator’s requirements.
“Operators are to note that with effect from the date of this circular, non-rendition of returns would attract sanctions which may include withdrawal of operating license. Where Operators do not have any transaction within the period, they are expected to render nil returns.”
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