The Central Bank of Nigeria (CBN) has unveiled new operational mechanism for Bureau De Change (BDC) operators in the country. The apex bank, which stated this in a circular posted on its website yesterday, said that the move was aimed at supporting the drive to, “improve the efficiency of the Nigerian foreign exchange market.
According to the circular, with the new operational mechanism: “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.”….CONTINUE READING
It further stipulates: “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.”
Also, the CBN, in the circular, warned BDC operators that with effect from August 17, 2023, non-rendition of returns will attract sanctions, “which may include withdrawal of operating license.” It said that where operators do not have any transaction within the period, they are expected to render nil returns.
However, when contacted, some BDC operators told Saturday Telegraph that they were confused about the new operational mechanism given that the CBN had not indicated that it would resume the sale of foreign exchange to BDCs which it stopped in July 2021CONTINUE READING
