The Central Bank of Nigeria (CBN) has unveiled a series of operational changes for the Bureau de Change (BDC) operations.
This is according to a circular dated August 17, by and signed the apex bank’s Director, Trade & Exchange Department, Dr O.S. Nnaji.
Under the new framework, the spread on buying and selling by BDC operators is set to fall within a permissible range of -2.5 per cent to +2.5 per cent of the forex market window’s weighted average rate from the previous day.
The development is expected to provide more stability and transparency to exchange rate fluctuations, ultimately benefiting both BDC operators and the general public.
Another significant alteration is the mandatory submission of periodic financial reports by BDC operators.
These reports, including daily, weekly, monthly, quarterly, and yearly renditions, are to be submitted through the upgraded Financial Institution Forex Rendition System (FIFX), tailored to meet the specific requirements of each operator. This change aims to enhance oversight and ensure that the BDC sector operates with with greater accountability.
The circular further emphasised that failure to submit accurate returns within the specified timeframe will result in sanctions, potentially leading to the withdrawal of operating licenses. Even in cases where BDC operators have had no transactions during a given period, they are required to submit nil returns, thereby fostering a culture of compliance and thorough record-keeping.
“All BDC operators and the public are urged to familiarise themselves with these new guidelines and adhere to them meticulously,” it said.
By introducing these measures, the CBN anticipates a more robust and well-regulated BDC segment that aligns with broader efforts to enhance forex market efficiency.