The Central Bank of Nigeria (CBN) has unveiled fresh operational mechanisms governing the sale of foreign exchange (forex) by Bureau De Change (BDC) operators within the country.
This development comes after a span of 25 months since the announcement made by the suspended CBN Governor, Godwin Emefiele, regarding the cessation of forex sales to this segment of the forex market.
According to a statement released by the CBN and posted on its official website on Friday, the new operational guidelines aim to regulate and enhance the activities of BDC operators, ensuring transparency, stability, and compliance within the forex market.
One of the prominent features of the newly introduced mechanisms is the stipulated spread for buying and selling by BDC operators.
The statement outlines, “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.”
This measure is anticipated to bring a more structured approach to forex transactions, preventing excessive price disparities and volatility.
Another significant aspect of the CBN’s announcement involves the mandatory submission of periodic reports by BDC operators through the Financial Institution Forex Rendition System (FIFX). The statement elucidates, “Mandatory rendition by BDC Operators of the statutory periodic reports (daily, weekly, monthly, quarterly, and yearly) on the FIFX which has been upgraded to meet individual Operator’s requirements.”
This requirement is geared towards fostering greater transparency and accountability in the operations of BDC operators.
The CBN’s statement also underscores the consequences of non-compliance with the newly introduced regulations.
It warns, “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.”
