In a bid to stabilize the foreign exchange (FX) market and curb speculative activities, the Central Bank of Nigeria (CBN) has issued fresh guidelines for Bureau De Change (BDC) operators, mandating them to purchase a minimum of $25,000 weekly from a single bank and render detailed returns. Naija247news gathered that the new directive, which takes immediate effect, aims to enhance transparency and accountability in the FX sector.
Thank you for reading this post, don't forget to subscribe!According to Naija247news, the CBN’s circular, addressed to all BDC operators, outlines stringent measures to ensure compliance. The apex bank emphasized that BDCs must source their FX exclusively from designated commercial banks and are prohibited from engaging in street trading or unauthorized transactions. “BDCs are required to purchase a minimum of $25,000 per week from one bank and submit weekly returns detailing their transactions,” the circular stated.
Naija247news understands that the new guidelines are part of the CBN’s broader strategy to streamline the FX market and reduce the pressure on the naira. The move comes amid rising concerns over the widening gap between the official and parallel market exchange rates, which has fueled inflation and economic uncertainty.
Industry experts have reacted to the development, with some commending the CBN for its proactive approach. “This is a step in the right direction. By mandating BDCs to source FX from banks and render returns, the CBN is closing loopholes that have been exploited for speculative activities,” said financial analyst Tunde Oladipo.
However, Naija247news reports that some BDC operators have expressed concerns over the feasibility of the new requirements. “Purchasing $25,000 weekly from one bank may be challenging, especially for smaller operators. This could lead to consolidation in the sector,” said a Lagos-based BDC operator who preferred anonymity.
The CBN has also warned that non-compliance with the guidelines would attract severe penalties, including the revocation of operating licenses. Naija247news gathered that the apex bank plans to intensify monitoring and enforcement to ensure adherence.
As the new FX guidelines take effect, stakeholders are watching closely to assess their impact on the naira’s stability and the broader economy. The CBN’s move underscores its commitment to restoring confidence in the FX market, but its success will depend on effective implementation and cooperation from all parties involved.
