CBN Proposes Ban on Street Trading, Considers New Guidelines for BDCs Amid Naira vs USD Fluctuations
As the Naira continues to fluctuate against the US dollar, the Central Bank of Nigeria (CBN) announces plans to implement fresh guidelines for Bureau De Change (BDC) operators, including a potential ban on street trading. This disclosure was made in the CBN’s draft Revised Regulatory and Supervisory Guidelines for BDC Operations in Nigeria.
Under the proposed guidelines, the CBN intends to establish minimum per capital share requirements for Tier 1 and 2 BDC licenses, set at N2 billion and N500 million, respectively. This marks a departure from the previous N35 million per capital share requirement for general licenses.
Tier 1 BDCs would be authorized to operate nationwide, open branches, and appoint franchisees with CBN approval. They would also exercise supervisory oversight over their franchisees, ensuring uniformity in branding and operational standards. Tier 2 BDCs, on the other hand, would operate within a single state or the Federal Capital Territory (FCT), limited to a maximum of three locations.
This development coincides with recent efforts to crack down on illegal BDCs in Abuja, Lagos, Kano, and Ibadan by the Economic and Financial Crimes Commission (EFCC), aimed at stabilizing the Naira against the USD.
Despite CBN’s previous interventions in the foreign exchange market, the Naira’s depreciation persists, with exchange rates reaching N1,750 to N1,800 per USD in the parallel market. The CBN’s proposed measures reflect ongoing efforts to address Nigeria’s foreign exchange challenges and promote stability in the currency market.
