Banking

CBN unveils new guidelines for forex sale by BDCs

The Central Bank of Nigeria (CBN) has announced a series of operational mechanisms for the sale of forex by Bureau De Change (BDC) operators in the country.

The CBN made the declaration in a statement issued on Friday, August 18, 2023.

This move is expected to provide more stability and transparency to exchange rate fluctuations, ultimately benefiting both BDC operators and the general public.

The apex bank stated: “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 latest development is coming 25 months after the suspended CBN Governor, Godwin Emefiele, announced the discontinuance of foreign exchange sales to BDC operators in the country.

However, the new policy would now reintegrate the BDC operators into the foreign exchange market.

The Star