In a significant development, the Central Bank of Nigeria (CBN) has unveiled fresh operational guidelines for the sale of foreign exchange (forex) by Bureau De Change (BDC) operators within the nation. This announcement marks a pivotal moment as it arrives 25 months after the suspension of forex sales to this specific segment of the forex market. The move aims to redefine and streamline the forex trading landscape, providing clarity and a structured framework for BDC operations.
According to the statement released on the CBN’s official website on Friday, the revised guidelines stipulate that BDC operators must adhere to a spread on buying and selling that falls within the allowable range of -2.5% to +2.5% of the Nigerian Foreign Exchange market window’s weighted average rate from the preceding day. This adjustment seeks to create a balanced and controlled environment that promotes stability and mitigates excessive fluctuations in forex rates.
Furthermore, an essential facet of the new directives is the mandatory requirement for BDC operators to submit periodic reports via the upgraded Financial Institution Forex Rendition System (FIFX). The system has been enhanced to cater to individual operator’s needs, and reports must be submitted on a daily, weekly, monthly, quarterly, and yearly basis. Non-compliance with these reporting obligations will carry consequences, including the potential withdrawal of operating licenses. BDC operators who have not conducted any transactions during a given period are still obligated to submit nil returns, emphasizing the CBN’s commitment to transparency and accountability.
The resumption of forex sales to BDC operators signifies a recalibration of the foreign exchange market landscape, underscoring the CBN’s efforts to foster a robust and well-regulated economic environment. This move is poised to have a far-reaching impact on the financial sector, BDC operations, and the overall stability of the Nigerian economy.
This development is sure to prompt discussions among experts, analysts, and stakeholders, as they evaluate the implications of the new guidelines on the forex market and the broader economy. As the industry absorbs this transformative change, market participants will closely monitor its effects, with experts anticipating further details and insights in the days to come.