The Central Bank of Nigeria CBN has introduced new set of guidelines for the operations of the Bureau De Change sector in the country.
The announcement which was made through a cicular on August 17, says it was part of efforts aimed at improving the BDC operations as well as the efficiency of the Nigerian Foreign Exchange Market.
The new framework is expected to streamline operations of the BDC and provide more stability and transparency to exchange rate fluctuations. The move is to benefit both BDC operators and the general public.
Some of the changes in the new guidelines include: the mandatory submission of periodic financial reports by BDC operators.
The reports, which includes daily, weekly, monthly, quarterly, and yearly renditions, are to be submitted through the upgraded Financial Institution Forex Rendition System (FIFX), aimed to meet the specific requirements of each operator. This is expected to enhance oversight and ensure that the BDC sector operates with greater accountability.
Under the new framework, 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.
The circular further stated that failure to submit accurate returns within the specified timeframe will result in sanctions, potentially leading to the withdrawal of operating licenses.
The circular charges all BDC operators and the general public to familiarize themselves with the new guidelines and adhere to them.
