Regulatory Alerts2023-08-18 | TED/FEM/PUB/FPC/001/007Operational Mechanism for Bureau de Change Operations in Nigeria
The Central Bank of Nigeria announces operational mechanisms for Bureau De Change (BDC) operations, including a specified spread limit on buying and selling rates, mandatory periodic reporting, and consequences for non-compliance, such as the potential withdrawal of operating licenses. These measures aim to enhance the efficiency and regulation of the Nigerian Foreign Exchange Market. BDC operators must adhere to these requirements to maintain their licenses and contribute to a well-functioning forex market in Nigeria.
CENTRAL BANK OF NIGERIA Corporate Head Office entral Business Distr P.M.B. 0187, Garki, Abuja, FC TRADE AND EXCHANGE DEPARTMENT 09 46237802 09 46237804 E-mail address: ted@cbn.gov.ng TED/FEM/PUB/FBC/001/007 August 17, 2023 TO: ALL BUREAU DE CHANGE AND THE GENERAL PUBLIC OPERATIONAL MECHANISM FOR BUREAU DE CHANGE OPERATIONS IN NIGERIA In support of the drive to improve the efficiency of the Nigerian Foreign Exchange Market, the Central Bank of Nigeria hereby announces the underlisted operational mechanism for the Bureau De Change (BDC) segment of the market:
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The spread on buying and selling by BDC Operators shail 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.
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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.
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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 O. S. NNAJI DIRECTOR TRADE & EXCHANGE DEPARTMENT