CBN  to Permit Bureau de Change Operators to Resume Foreign Exchange Activities

CBN to Permit Bureau de Change Operators to Resume Foreign Exchange Activities

February 25, 2024 0 By Fasholu Gabriel Oluwatobi

CBN to Possibly Permit Bureau de Change Operators to Resume Foreign Exchange Activities

In a potentially significant development for Nigeria’s foreign exchange market, Aminu Gwadabe, the head of the Association of Bureaux De Change Operators of Nigeria (ABCON), hinted at the possibility of the Central Bank of Nigeria (CBN) allowing Bureau de Change (BDC) operators to resume foreign exchange activities at the official market, beginning as soon as tomorrow.

Following an emergency meeting with CBN officials in Abuja, Gwadabe addressed the media, disclosing the deliberations. While no formal notice has been issued by the Central Bank as of yet, Gwadabe revealed insights into the discussions held.

More than 4,500 BDCs licensed by the CBN are anticipated to participate in the official trading activities, alongside authorized dealer banks. As part of the preparations for the resumption of transactions, BDC operators are instructed to deposit naira into their accounts at the Central Bank.

“Our members will fund their accounts with the CBN on Monday (tomorrow) to enable them to transact at the official window,” stated Gwadabe.

Emphasizing the importance of compliance, Gwadabe noted that the Central Bank had advised BDC operators on the significance of timely reporting and adherence to regulations aimed at combating money laundering. He assured the CBN of BDCs’ commitment to complying with the policy directives, including the submission of returns and furnishing comprehensive reports on the utilization of previously acquired dollars from the market.

With the potential influx of additional BDCs accessing dollar reserves, Gwadabe speculated on the future trajectory of the naira’s exchange rate vis-a-vis the dollar, anticipating a decline.

While expressing gratitude for the return of dollar sales to operators, Gwadabe also conveyed BDCs’ aspirations for the CBN to create additional avenues for conducting business, such as facilitating access to diaspora funds.

“We want more windows to be opened for BDCs instead of restricting BDCs to official market funds,” Gwadabe asserted.

As stakeholders await further developments from the Central Bank, the potential resumption of foreign exchange activities by BDC operators holds implications for Nigeria’s financial landscape.

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