The Central Bank of Nigeria has announced the revocation of licenses of Bureau De Change operating engaged in unethical practices.
CBN Governor, Olayemi Cardoso, made think statement at the Vanguard Economic Summit, themed ‘Reforms In The Era of Global Economic Uncertainties: Whither Nigeria?’ on Thursday.
Following a three-month consultation period with stakeholders, the apex bank issued regulatory guidelines for BDC operations on May 22.
According to Cardoso, represented by the Director of the Risk Management Department, Blaise Ijebor, the guidelines aim to address the challenges faced by BDCs in the foreign exchange market, promoting a more stable and transparent financial environment.
He said, “To this end, we have developed revised regulatory and supervisory guidelines for BDC operations in Nigeria.
“This is aimed at ensuring that BDCs play the right role that they have been envisioned to play in the foreign exchange market.
“In addition, we have also revoked the licence of BDCs, who it has been established have been involved in unwholesome practices.”
The Central Bank of Nigeria has outlined specific guidelines for Bureau de Change operators, prohibiting them from engaging in various activities.
These include street trading of foreign currencies; maintaining accounts or accepting assets for safekeeping/custody; taking deposits or granting loans to the public in any currency or form; retail sale of foreign currencies to non-individuals (except for business travel allowance, international outward transfers, or off-shore business); maintaining foreign correspondent relationships with foreign establishments without prior approval; opening or maintaining accounts with foreign banks or financial institutions without prior approval
Additionally, all BDCs are required to reapply for licenses. Speaking at the event, the CBN governor emphasized the bank’s commitment to increasing diaspora remittances through official channels, aiming to improve liquidity in the foreign exchange market.”
“We are working closely with key stakeholders in these segments. And recently, we pushed this forward,” Cardoso said.
“We licenced 14 new international money transfer operators (IMTOs) to enhance competition, efficiency, and transparency in the FX market.”
The CBN governor reaffirmed the bank’s dedication to fostering a transparent and efficient foreign exchange market, where exchange rates are determined by market forces. He expressed optimism that this approach will ultimately lead to a stable naira, enjoying long-term stability and predictability.
