The Central Bank of Nigeria (CBN) has issued new operational guidelines for Bureau de Change (BDC) operators in the country, outlining their permissible limits within the Nigeria Foreign Exchange Market.
The apex bank, through a circular shared on its website on Friday evening, stated that these measures were taken to enhance the efficiency of the foreign exchange (forex) market. The circular, issued by Dr. O.S. Nnaji, Director of the Trade and Exchange Department, was addressed to both BDCs and the general public.
The guidelines stipulate that BDC operators’ buying and selling spreads are set within an allowable range of -2.5% to +2.5% of the Nigerian Foreign Exchange market’s weighted average rate from the previous day.
Furthermore, the circular highlights the necessity for BDC operators to provide required periodic reports (daily, weekly, monthly, quarterly, and yearly) via the upgraded Financial Institution Forex Rendition System (FIFX), tailored to meet individual operator needs.
The circular emphasizes that non-submission of these reports will result in sanctions, which could extend to the revocation of an operator’s license. For operators with no transactions during a specific period, they are required to submit nil reports. It’s advised to take note of these instructions and ensure full compliance.