Two years after the ban, CBN releases new guidelines for BDCs selling foreign currency

This action is anticipated to increase exchange rate stability and transparency, which will eventually be advantageous to both BDC operators and the general public.

A number of new operational rules for Bureau de Change (BDC) operators in the nation were unveiled by the Central Bank of Nigeria (CBN) on Friday.

The restriction of foreign exchange sales to BDC operators in that sector of the FX market was declared by suspended CBN governor Godwin Emefiele more than two years ago.

The spread on buying and selling by BDC operators is expected to fall within the new framework’s permitted range of -2.5% to +2.5% of the weighted average rate from the previous day’s Nigerian foreign currency market window.

This action is anticipated to increase exchange rate stability and transparency, which will eventually be advantageous to both BDC operators and the general public.

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To warn the people against falling for loan sharks and operators of Ponzi schemes, the apex bank has released a cautionary note on the illicit activities of financial operators in the nation.

The CBN said in a statement posted on its website that the operations of IFOs portend a serious risk to the nation’s financial system while expressing concern over the rising numbers of illegal financial operators.

The top bank has urged the public to avoid working with unlicensed or illegal financial operators who entice and deceive unwary members of the public by promising remarkable returns on investments through its Financial Services Regulation and Coordinating Committee (FSRCC).