The Central Bank of Nigeria Implements Bold Reforms to Revamp Bureau De Change Operations
In a resolute move to overhaul the dynamics of Nigeria’s foreign exchange market, the Central Bank of Nigeria (CBN) has unleashed a sweeping transformation in the operations of Bureau de Change (BDC) entities.
This game-changing announcement, unveiled on August 17, 2023, signifies a pivotal shift towards efficiency and transparency within the BDC realm.
The CBN’s directive, as disclosed in their statement on Friday, August 18, 2023, mandates BDC operators to maintain a controlled spread, oscillating within a tight -2.5% to +2.5% range of the Nigerian Foreign Exchange market window’s weighted average rate from the preceding day. This calculated move is set to bestow a newfound equilibrium on exchange rate fluctuations, benefiting both BDC operators and the wider populace.
Furthermore, a remarkable modification entails the compulsory submission of periodic reports by BDC operators through the enhanced Financial Institution Forex Rendition System (FIFX). These reports must be filed on a daily, weekly, monthly, quarterly, and yearly basis, tailored to the specific needs of each operator. Failure to comply with this new requirement, effective immediately, carries severe consequences, including the potential revocation of operating licences. It is worth noting that operators devoid of any transactions during the specified period are obligated to submit nil returns.
Governor Emefiele, highlighting the shift, emphasised that BDCs had regrettably evolved into conduits for money laundering, pledging the CBN’s unwavering resolve to address this issue head-on. He also issued a stern warning to Nigerian banks found to be complicit in supporting these illicit forex dealers, promising decisive action against such collaborators.
In sum, the CBN’s resolute actions reflect an unwavering commitment to fortify Nigeria’s financial landscape, heralding a new era of integrity, accountability, and stability within the Bureau of Change operations.
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Francis Chinedu is a Nigerian-born digital marketing specialist, a bitcoin and blockchain enthusiast, and a YouTuber who enjoys covering events that empower young Africans, especially in technology.