MON, AUGUST 21 2023-theGBJournal |The Central Bank of Nigeria (CBN) weekend unveiled a new of operational mechanism for the Bureau De Change (BDC) operation in Nigeria, nearly two years after their ban by the apex bank.
The set guideline also suggests that the ban placed on the BDC’s operation in the country has been lifted even as there is no statement to the effect from the CBN.
The key measures aimed at improving the BDC operations as well as enhancing the efficiency of the Nigerian Foreign Exchange Market were outlined by the CBN in the new guideline.
They include the spread on buying and selling by BDC operators which is now 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.
This move is expected to provide more stability and transparency to exchange rate fluctuations, ultimately benefiting both BDC operators and the general public.
Another significant alteration is the mandatory submission of periodic financial reports by BDC operators.
The BDC’s are required to provide mandatory rendition 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 requirement.
According to the CBN, with effect from the date of the circular, non-rendition of returns would attract sanctions which may include withdrawal of operating license.
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