According to a circular signed by the Director, Trade and Exchange Department, Dr Musa Nakorji, the move is part of efforts to improve foreign exchange liquidity in the retail segment of the market.

The circular said that the CBN had also approved that weekly FX purchases by each BDC be capped at 150,000 dollars, and that utilisation comply with existing BDC operational guidelines.

“All BDCs duly licensed by the CBN are permitted to access foreign exchange through any Authorised Dealer Bank of their choice, at the prevailing market rates.

“The move aims to deepen market efficiency and ensure broader access to foreign exchange across the economy,” it said.

The CBN, however, imposed strict compliance and risk-management conditions on the transactions.

It said that authorised dealers were required to conduct full Know-Your-Customer, KYC, and due diligence checks on BDC clients before any FX sale.

To strengthen transparency and accountability, the apex bank directed that all licensed BDCs must submit timely and accurate electronic returns in line with extant regulations.

It added, “Any unutilised foreign exchange must be sold back to the market within 24 hours, as BDCs are prohibited from holding FX positions purchased from the NFEM.”

The circular further restricts settlement practices, mandating that all FX transactions be conducted through settlement accounts with licensed financial institutions.

It said that third-party transactions were prohibited, while cash settlement is limited to a maximum of 25 per cent of each transaction amount.

“Overall, the directive reflects the CBN’s broader strategy to balance market access with strong regulatory oversight, ensuring liquidity in the foreign exchange market while safeguarding financial system integrity.”

Source: NAN

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EFCC spokesperson, Mr. Dele Oyewale, disclosed this in a statement on Thursday in Abuja, stating that the suspects were apprehended on Wednesday following credible intelligence and surveillance.

He said the individuals were allegedly operating BDCs without the required licences.

“Items recovered from them include cash and exotic jewellery.

“The suspects are currently under investigation and will be arraigned in court soon,” Oyewale added.

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This is according to a statement issued by Dr Williams Kanaya, the Acting Director, Trade and Exchange Department of the apex bank.

“This is to inform the BDC operators and the general public that we are providing more liquidity into the market.

“To this end, the CBN has approved the sale of 20,000 dollars to each eligible BDCs operator at the rate of                    N1, 580/dollar. This is to meet the demand for invisible transactions.

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“All BDCs are allowed to sell to eligible end-users at a margin not more than one per cent above the purchase rate from CBN.

“Eligible BDCs interested in this transaction are directed to make the Naira payment to the CBN deposit account numbers with them,” he said.

He stated that payment confirmation and all necessary documentation for disbursement were to be submitted at the appropriate CBN branches in Abuja, Awka, Kano and Lagos for collection of the 20,000.00 dollars.

Source: NAN

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The Director, Financial Markets Department, CBN, Ms Omolara Duke, said this in a statement on Friday in Abuja.

Duke said that recent movements in foreign exchange market were largely driven by demand pressure from corporate entities and summer season uptik.

She said that such foreign exchange supply was in line with the price stability mandate of the CBN, as well as its commitment to ensure a well-functioning and liquid market.

She said that the apex bank would continue to support various segments of the official markets with liquidity over the next few weeks.

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“In line with the above, the CBN, on Thursday and Friday, sold a total sum of 106.5 million dollars to 29 authorised dealer banks between an exchange rate range of N1, 498 to one dollar.

“In addition, it bought 9.5 million dollars from four authorised dealer banks at rates between N1,510 to one dollar and N1,550 to one dollar,” she said.

She said that CBN would continue to closely monitor compliance with existing trading rules and regulations by authorised dealer banks to promote ethical conduct and support the drive to achieve foreign exchange market stability.

She urged the general public to direct their foreign exchange demand to their banks and BDC operators in accordance with prevailing market regulations.

Source: NAN

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The Director, Trade and Exchange Department of the CBN, Dr Hassan Mahmud, made this known in a letter addressed to the President, Association of Bureau De Change Operators of Nigeria, ABCON, on Tuesday in Abuja.

Mahmud said that the CBN would sell to the BDCs at the rate of N1, 021 to a dollar.

“The BDCs are in turn to sell to eligible end users at a spread of not more than 1.5 per cent above the purchase price,” he said.

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He directed all eligible BDCs to commence payment of Naira deposit to some designated CBN Naira deposit account numbers.

“All BDCs are advised to continue to abide by the rules and conditions as stipulated in our earlier operational guidelines,” he said.

The apex bank had earlier, on April 8, approved the sale of 10,000 dollars to 1,588 eligible BDCs operators at the rate of N1,101 to the dollar.

The approvals are part of CBN’s intervention in the foreign exchange market to improve liquidity and stabilise the Naira.

Source: NAN

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According to a statement issued by CBN’s Acting Director, Corporate Communications Department, Mrs Hakama Sidi, on Friday in Abuja, the move is in exercise of the powers conferred on it under the Bank and Other Financial Institutions Act, BOFIA.

Sidi said that the list of affected BDC operators was available on the Bank’s website.

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She said that the affected institutions failed to observe at least one of the following regulatory provisions:

They are payment of all necessary fees, including licence renewal, within the stipulated period in line with the guidelines.

Others are the rendition of returns in line with the guidelines and compliance with directives and circulars of the CBN, particularly Anti-Money Laundering, AML, Countering the Financing of Terrorism, CFT and Counter-Proliferation Financing, CPF, regulations.

“The CBN is revising the regulatory and supervisory guidelines for BDC operations in Nigeria.

“Compliance with the new requirements will be mandatory for all stakeholders in the sector when the revised guidelines become effective.

“Members of the public are hereby advised to take note and be guided accordingly,” she said.

Source: NAN

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Dr Hassan Mahmud, Director, Trade and Exchange Department, CBN, in a circular, said the move was aimed at tackling distortions in the retail segment of the nation’s foreign exchange market.

The circular addressed to BDC operators said they were allowed to sell to end-users at a margin not more than one per cent above the purchase rate from CBN.

“Following the on-going reforms in the foreign exchange market, aimed at achieving an appropriate market determined exchange rate for the Naira, the Central Bank of Nigeria (CBN) 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.

“To this end, 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 $20,000 is to be sold to each BDC at the rate of N1,301/$ – (representing the lower band rate of executed spot transactions at NAFEM for the previous trading day, as at today, 27th February 2024).

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“All BDCs are allowed to sell to end-users at a margin NOT MORE THAN one per cent (1%) above the purchase rate from CBN.

“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 documentations, for disbursement at the appropriate CBN Branches – Abuja, Awka, Lagos and Kanο),” it started.

A guideline was attached for the BDCs’ disbursement and monitoring of utilisation.

It noted that all those allocated Foreign Exchange, must keep records of beneficiaries and amount sold to each of them.

It said BDCs should not sell more than 4,000 dollars per individual for Personal Travel Allowance and 5,000 dollars for Business Travel Allowances.

It listed other guidelines including BDCs allocated buying and selling rate, prohibition of street hawking of forex, daily provision of the sale of Foreign Exchange to end users, among others.

Source: NAN

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The guidelines which seek to enhance the regulatory framework for BDC operations as part of ongoing reforms of the Nigerian foreign exchange market, is contained in a circular on Friday.

The circular signed by Haruna Mustafa, Director, Financial Policy and Regulation Department of the CBN had the 50 paged guidelines attached.

The guidelines spelt out activities allowed, licensing requirements, corporate governance and Anti-Money Laundering/Combating the Financing of Terrorism provisions for BDCs.

The draft document on the CBN’s website also listed new record-keeping and reporting requirements, corporate governance requirements, financial requirements, among others.

“Pursuant to the powers conferred under Section 56 of the Banks and Other Financial Institutions Act, 2020 (BOFIA), the Central Bank of Nigeria (CBN) hereby issues this draft revised Regulatory and Supervisory Guidelines for Bureau de Change (BDC) Operations in Nigeria for stakeholder comments and/or inputs.

“The Guidelines significantly enhances the regulatory framework for the operations of Bureau De Change as part of ongoing reforms of the Nigerian foreign exchange market.

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“The Guidelines revises the permissible activities, licensing requirements, corporate governance and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) provisions for BDCs.

“It also sets out new record-keeping and reporting requirements, among others,” the circular said.

Mustafa said the draft guidelines were available on the CBN’s website, www.cbn.gov.ng.

He urged stakeholders to forward their comments to the Director, Financial Policy and Regulation Department, CBN, Abuja with soft copies mailed to PolicyandRegulationDivision@cbn.gov.ng by March 4, 2024.

Some portions of the 50 paged draft document targeted transparency, elimination of corruption and hoarding of Forex.

It gave reasons for preservation of records and conditions for revocation of BDC operations licence.

“Every BDC shall maintain documents obtained from its customers for at least five years after the consummation of the transaction,” draft item 18.0 in the schedule noted.

It said the CBN might revoke the license of a BDC where the operator or its entities forges, mutilates, alters or defaces any foreign currency, or other foreign exchangte instruments with intent to defraud.

The document also prohibited multiple ownership of BDCs; obtaining foreign currency from ineligible sources or from eligible ones in a fraudulent manner.

It also spelt out sanctions for other regulatory infractions.

Source: NAN

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Alhaji Aminu Gwadabe, President ABCON, stated this in an interview with the News Agency of Nigeria, NAN, on Sunday in Lagos.

Gwadabe spoke against the backdrop of the outlook of the naira as the January 31 deadline for the swap of the old naira notes with the new ones approaches.

“The naira redesign and the security surveillance of the financial system have stemmed the volatile demand pressure in the parallel market.

“This explains the stability witnessed at the retail end of the  parallel market,” Gwadabe said.

The ABCON chief said that the naira had traded within a stable band of N750 to the dollar since the introduction of the policy till date.

He said that the exchange rate had remained stable in the face of the shortage of supply of the dollar in the market.

According to him, the lack of available new naira notes had continued to raise fears and concerns among average Nigerians.

He urged the CBN to continue its advocacy and stakeholders engagement to ensure a seamless transition of old notes to the new ones.

Source: NAN

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Alhaji Aminu Gwadabe, President, ABCON, said this in an  interview with the News Agency of Nigeria, NAN, on Wednesday in Lagos.

“There is an observed growing return to sanity in the parallel market as the deadline for the cancellation of the old notes and introduction of the new notes in circulation come closer.

“The market is witnessing a dull moment as the spiral volatility in the exchange rate of the local currency nosedived south west.

“Majority of the dealers are very cautious in quoting their bid and offer rates to their clients, who desperately want to upload their position in the market,” Gwadabe said.

The ABCON chief said the development became paramount as demands for foreign currency were being diverted to commodity market.

He noted that a tonne of hibiscus (zobo) which was selling for N500, 000 jumped to N1m per tonne.

“A bag of millet which was selling for N18,000 per bag now sells for N24,000 per bag,” he said.

Gwadabe said that there were governance decisions made outside the shores of Nigeria that were impacting the naira positively.

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He said that reports that the U.S. would cease using currency notes printed before year 2021 also helped the naira to rebound.

The ABCON boss said that the recent recall for foreign assets of the Vatican back home and the Saudi Arabia diversification drive from oil to renewable energy was pointing to a New World Order.

According to him, the new world order may likely lead to a global financial distortion that will challenge the hegemony of the American dollar.

“In the light of the above, we, therefore urge the CBN to seize the positive trajectory to revisit the suspension of the Bureau De Changes (BDCs) from accessing the designated official FX windows in the ecosystem.

“ABCON also advises the CBN to continue with their crack down on foreign exchange abuses in the market.

“It is also noteworthy for the CBN to liberalise Diaspora remittance pick up agency and come up with new non-export proceeds utilisation to inject liquidity in the market,” Gwadabe said.

The financial expert urged the monetary and fiscal policy authorities to work harmoniously to eliminate the fixed versus flexible exchange rate framework to establish a market clearing price.

He said that such harmony was needed to usher in foreign investments inflows and also discourage rent seeking, currency substitutions, speculation and hording in the market.

He expressed the commitment of BDCs to friendly reforms and preparedness to serve the transmission mechanism roles in foreign exchange rate stabilisation in the economy.

“Finally, we want to thank our members for their understanding and collaborations with the regulatory and security agencies in ensuring the stability of our local currency despite the harsh operational environment,” Gwadabe said.

Naira on Wednesday flattened against the dollar at the parallel market, exchanging at N790 to the dollar in Lagos.

The local currency gained N110 from exchanging at N790 on Wednesday afternoon from N900 traded on Friday.

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