By CLEMENT NWOJI, Abuja
The Central Bank of Nigeria (CBN) has reintroduced its earlier scraped forex sales to Bureau De Change (BDC) operators, but this time around with more stringent measures to forestall abuse.
The latest measure is targeted at making forex easily accessible to buyers at controlled rate giving the growing depreciation of the Naira against the dollar in particular.
OPTIMUM TIMES recalls that the CBN stopped forex sales to BDCs two years ago, in August 2021, following observed collosal abuse through round-tripping of forex the BDCs bought from the apex bank.
The reintroduction was made through a circular by the Director, Trade and Exchange Department of CBN, Dr. S. O. Nnaji to all the BDCs.
Titled “Operational mechanism for all Bureau De Change operations in Nigeria”, the apex cautioned the BDCs to be guided accordingly and ensure compliance as the new operation commenced immediately.
Under the new guideline the apex bank said was meant to support the drive to improve the efficiency of the Nigerian Foreign Exchange Market, it directs that:
“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.
“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 transaction within the period, they are expected to render nil returns.
The CBN had before now scrapped sales of forex to BDCs two years ago saying, “We are concerned that BDCs have allowed themselves to be used for graft. They have turned themselves away from their objectives”.
It then resolved to be selling directly to commercial banks, from where customers who had legitimate and applicable transactions would be able to buy.
Further to the new guidelines on forex transactions by the BDCs, the CBN in collaboration with the Financial Services Regulation and Coordinating Committee (FSRCC), National Broadcasting Commission (NBC), have alerted the public to the “worrisome increase in the activities of Illegal Financial Operators (IFOS) which portends grave risk to the public confidence and stability of the Nigerian Financial System.”
The bank stated that the FSRCC and NBC in their continuing efforts to end the scourge of IFOs in Nigeria, issued the following advisory to the general public:
“Refrain from dealing with unlicensed or illegal financial operators, who lure and defraud unsuspecting members of the public by offering extra- ordinary returns on investments as bait.
“Verify the licensing status of such companies and schemes on the following websites before investing in them: CBN: https://www.cbn.gov.ng;
NAICOM: https://naicom.gov.ng; PenCom: https://www.percom.gov.ng and SEC: https://sec.gov.ng
It advised the Public to report any individual or entities suspected to be involved in such nefarious activities to Law enforcement agencies.
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