The Central Bank of Nigeria (CBN) has issued new operational procedures for the sale of foreign currency by Bureau De Change (BDC) operators in the country.
CBN via a statement obtained by BizWatch Nigeria said, “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. Please be guided accordingly and ensure compliance.”
The new operational procedure comes 25 months after suspended CBN governor Godwin Emefiele announced the end of foreign exchange sales to that area of the forex market.
Emefiele stated that the BDCs had become money laundering agents, emphasizing that the CBN “will deal ruthlessly with Nigerian banks who have acted as collaborators with these illegal forex dealers; we will deal ruthlessly with them because they have allowed their banking and payment system infrastructure to facilitate these illegal dealings in foreign exchange.”
He stated at the time that the BDCs were dollarizing the Nigerian economy and undermining the central bank’s cashless strategy.
However, in a move to stabilize the foreign exchange market, the CBN’s new leadership has asked the BDCs to be guided and follow the new standards.
The apex bank did not clearly indicate whether it will continue to sell dollars to BDCs.
