Business

CBN orders DMBs to sell forex to BDCs

emefiele-CBN

The Central Bank of Nigeria (CBN) has instructed Deposit Money Banks (DBMs) that include Zenith Bank Plc, and other authorized deals in the country to begin sales of foreign exchange to Bureaux De Change (BDCs).

CBN in a circular signed by Acting Director, Trade & Exchange, Mr. W. D Gotring, said authorized dealers who are agents to approved International   Money Transfer Operators are directed to sell foreign currency accruing from inward money remittances to licensed BDCs.

The circular reads that, “In continued effort to ensure the stability of the exchange rate and to encourage participation of all critical stakeholders in the foreign exchange market. authorized dealers who are agents to approved International Money Transfers operators are hereby directed to sell foreign currency accuring from inward money remittances to licensed Bureaux De Change Operators (BDCs) with effect from the date of this circular.

“It should be noted that all International Money Transfer Operators are required to remit foreign currency to the agent banks for disbursement in Naira to the beneficiaries while the foreign currency proceeds shall be sold to the BDCs.

“The foreign currency proceeds of International Money Transfer sold to BDC Operators shall be retailed to end users in compliance with the provisions of Anti-Money Laundering Laws and observance of appropriate KYC principles, including the use of BVNs.

“Furthermore, authorized dealers and BDC    operators are required to render returns on their operations daily and monthly to the Director, Trade Exchange, CBN via e-FASS application in accordance with extant regulation.

“For the avoidance of doubt, failure by any authorized dealer and/ or Bureux De Change operators to render returns  when due shall attract appropriate sanction, including withdrawal of dealership licence,” the circular added.

The President, Association of Bureaux De Change Operators of Nigeria, Alhaji Aminu Gwadabe, had disclosed to Nigerian NewsDirect that the apex banking regulatory body would resume foreign exchange to its members, urging them to avoid malpractices.

Early this year, the CBN had banned sales of foreign exchange to the BDC operators in a bid to reduce pressure on the naira.

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