Region

Jurisdiction

Regulator

2013-11-28 | TED/FEM/FPC/GEN/01/20

Developments in the Foreign Exchange Market

This circular from the Trade and Exchange Department (TED) outlines new guidelines for Authorised Dealers selling foreign exchange cash to Bureau de Change (BDC) operators, with a maximum weekly sale of $250,000 per BDC at a rate of the Interbank exchange rate plus a 1% margin. The selling rate by the Authorised Dealer to BDCs is also capped at a 2% margin above the buying rate, and both parties must submit their sales and purchase returns using provided email addresses by 10:00 am on the following Monday. Failure to comply with these provisions could result in appropriate sanctions, including withdrawal of the operating license.

Nigeria

Central Bank of Nigeria

TRADE AND EXCHANGE DEPARTMENT 09-46237804 09-46237811 e-mail :- ted@cbn.gov.ng Our Ref: TED/FEM/FPC/GEN/01/20 November, 28th 2013 ALL AUTHORISED DEALERS, BUREAU DE CHANGE (BDC) TO: OPERATORS AND GENERAL PUBLIC RE: DEVELOPMENTS IN THE FOREIGN EXCHANGE MARKET In furtherance to the provision of paragraph 4 of the circular Ref. No.

TED/FEM/FPC/GEN/01/009 dated September 26, 2013, Authorised Dealers and BDC Operators are notified of the following additional guidelines for compliance with effect from the date of this circular.

Authorised Dealers shall continue to sell foreign exchange cash to BDCs subject to a maximum amount of $250,000.00 (Two hundred and fifty thousand United States Dollars) per week per BDC.
The selling rate by the Authorised Dealer to BDCs shall be the prevailing Interbank exchange rate plus a margin not exceeding one (1) per cent; 3. Foreign exchange cash purchased by BDCs from Authorised Dealers (ADs) and the CBN shall be sold to foreign exchange end-users at a rate not exceeding two (2) per cent margin above the buying rate.
For the avoidance of doubt, the two (2) per cent margin stated in (3) above shall be applicable to all funds to be retailed by BDCs regardless of sources of the fund.
Authorised Dealers shall continue to render weekly returns on sales to BDCs and the latter shall also continue to render weekly returns on purchases from ADs, using the format attached. In addition, BDCs are enjoined to keep adequate records of foreign exchange sales and purchases for purpose of monitoring by the authorities.
Notwithstanding the provisions of paragraph five (5) above, BDCs shall continue to render weekly returns on utilization of funds purchased from all sources to the CBN.
The returns in (5) and (6) above shall be submitted to the Director, Trade and Exchange Department, using the mail addresses stated below not later than 10.00 a.m. on the Monday following the week the transactions took place.
oaolusoji@cbn.gov.ng 2. piechendu@cbn.gov.ng 3. Hlsaadu@cbn.gov.ng Accordingly, Authorised Dealers and BDC Operators are required to ensure compliance with the provisions of this circular, failing which appropriate sanctions, including withdrawal of operating license shall be imposed.

Lisaban BATARI MUSA DIRECTOR, TRADE AND EXCHANGE DEPARTMENT

Urns On Fx Sales To Bl

AME OF DEPOSIT MONEY BANK

SALES*
RATES	NTER-BANK**
OTHERS
AMOUNT SOLD	GBP
USD
BDC ADDRESS
BDC NAME
BDC CODE.	NOTE
S/N

Refers to the Bank's buying rate of Inter-bank fun efers to selling rate to the BDCs PREPARED BY NAME: DESIGNATION: SIGNATURE & DATE APPROVED BY NAME: DESIGNATION: SIGNATURE & DATE

Scillised on

Turns On Fx Purchases From Ban

............................

NAME OF BDC

SALES*
RATES	NTER-BANK*
OTHERS
AMOUNT SOLD	GBP
USD
BANK NAME .	NOTE
s/N

Refers to the BDCs buying rate of Inter-bank funds from Bar efers to selling rate to the endusers PREPARED BY NAME: DESIGNATION: SIGNATURE & DATE APPROVED BY NAME: DESIGNATION: SIGNATURE & DATE

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