Nigeria: New Guidelines Issued by Nigeria’s Central Bank for Bureau de Change Operators

The Central Bank of Nigeria has introduced fresh operational guidelines for Bureau de Change (BDC) operators in the nation, establishing their permissible limits within the Nigeria Foreign Exchange Market.

In a circular released on its website on Friday night, the apex bank, through its Director of Trade and Exchange Department, Dr. O.S Nnaji, communicated the new regulations to BDCs in the country and the public. This step has been taken as part of the efforts to enhance the effectiveness of the forex market.

As per the circular, the range between buying and selling rates by BDC operators has been set within an allowable range of -2.5 per cent to +2.5 per cent of the Nigerian Foreign Exchange market’s previous day’s weighted average rate.

The circular also elaborated, “It is now mandatory for BDC Operators to submit their periodic reports (daily, weekly, monthly, quarterly, and yearly) through the upgraded Financial Institution Forex Rendition System (FIFX), tailored to meet individual Operator’s requirements.

“Operators must take note that beginning from the issuance date of this circular, failure to provide the required reports would result in penalties, which could include the revocation of the operating license. In cases where Operators have not conducted any transactions within a specific period, they are expected to submit nil returns. We urge strict adherence to these guidelines.”

These new guidelines are designed to enhance transparency and streamline the operations of BDCs in the foreign exchange market, aiming to maintain a stable and efficient environment for forex transactions.