The Central Bank of Nigeria (CBN) has recently introduced new guidelines for the sale of foreign exchange (forex) by Bureau De Change (BDC) operators in Nigeria.
This decision comes after a span of twenty-five months since the suspended governor of CBN, Godwin Emefiele, announced the discontinuation of forex sales to this particular segment of the forex market.
In a statement released on its official website, the CBN outlined the key provisions of the new guidelines.
One significant aspect is that the spread between the buying and selling rates for BDC operators should fall within a permissible range of -2.5% to +2.5% of the Nigerian Foreign Exchange market window’s weighted average rate from the previous day.
Moreover, the CBN has emphasized the mandatory requirement for BDC operators to submit statutory periodic reports.
These reports, which include daily, weekly, monthly, quarterly, and yearly renditions, should be submitted through the upgraded Financial Institution Forex Rendition System (FIFX).
This upgrade has been designed to cater to the individual requirements of each operator.
The circular from the CBN also underlines the consequences of non-compliance.
BDC operators who fail to submit their required returns could face sanctions, which might even involve the withdrawal of their operating licenses.
Even in cases where operators have had no transactions during a specific period, they are still expected to provide nil returns.
In conclusion, the Central Bank of Nigeria’s issuance of new guidelines for forex sales by BDC operators represents a significant development in the country’s forex market.
The aim of these guidelines appears to be the promotion of transparency and accountability among BDC operators, thereby contributing to the overall stability of the forex market.
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