The Central Bank of Nigeria (CBN) has released a new set of guidelines under which Bureau de Change (BDC) operators can trade forex in the country.
This was contained in a circular signed by the director of trade and exchange, O.S. Nnaji and addressed to all BDC and the general public.
According to the new guidelines, the spread on buying and selling by BDC operators is set to 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.
“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,” the circular read in part.
In 2021, the CBN announced the suspension of sales of forex to BDCs, saying the parallel market had become a conduit for illicit forex flows and graft.
The bank had also said it would no longer process applications for BDC licences in the country.
The apex bank said it would only deal with commercial banks for forex issues.
