Nigeria’s FX Crisis Will Continue Until We Scale Up Production For Export’

CBN To Resume Forex Sales To BDC Operators, Reveals Guidelines For Parallel Operations

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The Central Bank of Nigeria (CBN) has lifted the restriction placed on the sale of foreign exchange to the Bureau De Change (BDC) operators under Godwin Emefiele.

In a statement released on Friday, the CBN said the BDC operators will operate in line with certain guidelines to police the activities of the black market operators.

Recall that Emefiele, the suspended CBN governor, banned sales of forex to the BDC operators, accusing them of profiteering and assisting illegal businesses to evade the financial system.

The restriction began on 27 July 2021, costing the BDC operators $5,000 which the CBN allocates to each BDC centre to support supply in the parallel market.

Following the lifting of the ban, CBN said the buying and selling in the BDC market will now be pegged to the activities of the previous day in the Nigerian Foreign Exchange market.

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The BDC operators were also directed to make mandatory renditions of the statutory periodic reports, daily, weekly, monthly, quarterly, and yearly transactions. 

Should the BDC operators not adhere to the directive, they will be sanctioned, as the CBN stated that any operator found wanting will lose their license. 

“The spread on buying and selling by BDC Operators shall be within an allowable limit of -2.5% to +2.5% of the Nigerian Foreign Exchange market window weighted average rate of the previous day. 

“Mandatory rendition by BDC Operators of the statutory periodic reports (daily, weekly, monthly, quarterly, and yearly) on the Financial Institution Forex Rendition System (FIFX) which has been upgraded to meet individual Operator’s requirements. 

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“Operators are to note that with effect from the date of this circular, non-rendition of returns would attract sanctions which may include withdrawal of operating license. Where operators do not have any transactions within the period, they are- expected to render nil returns. Please be guided accordingly and ensure compliance,” the CBN said.

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