*Pix above: USD
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Despite the low strengthen of the naira currency and the ongoing distortion at the retail end of the FX market, the nation’s apex bank has insisted on selling the US dollar at the rate of N1,301 to Bureau de Change operators.
Revealing this in a statement released on Tuesday, its Director, Trade and Exchange Department, Dr. Hassan Mahmud, said: “All BDCs are allowed to sell to end users at a margin not more than one percent (1%) above the purchase rate from CBN.
“The CBN has approved the sale of foreign exchange to eligible Bureau de Change (BDCs) to meet the demand for invisible transactions. The sum of $20,000 is to be sold to each BDC at the rate of N1,301/$.”
Mahmud said all eligible BDCs are directed to make the Naira payment to the designated ‘CBN Foreign Currency Deposit Naira Accounts’ and submit confirmation of payment with other necessary documentation for disbursement at the appropriate CBN branches.
This comes barely 48 hours after the apex announced that the minimum capital requirements for BDC operators in Nigeria will be N2 billion for Tier 1 licence holders.
The bank added that the requirement for a Tier 2 licence would be N500 million, marking a departure from the previous threshold of N35 million for a general licence.
The new directives are contained in the CBN’s revised Regulatory and Supervisory Guidelines for Bureau de Change (BDC) Operations in Nigeria, according to the powers conferred to the central bank under Section 56 of the Banks and Other Financial Institutions Act, 2020 (BOFIA).
According to a circular released by Mr. Haruna Mustapha, Director of the Financial Policy and Regulation Department, the guidelines are designed to enhance the regulatory framework amidst ongoing reforms in the foreign exchange market.
The circular reads, “Following the ongoing reforms in the foreign exchange market, aimed at achieving an appropriate market-determined exchange rate for the Naira, the Central Bank of Nigeria has observed the continued price distortions at the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium./PLEASE SHARE
*Tags: CBN, BDCs, FX
