CBN issues guideline for Bureau De Change operation, sets -2.5 to 2.5 buying, selling limits

Central Bank of Nigeria in a circular titled Operational Mechanism for Bureau De Change Operation in Nigeria has set a buying and selling limits for the operation of Bureau De Change in Nigeria. The Circular sighted by Businesses news report dated 17, August 2023 and signed by Dr. O. S Nnaji, Director, Trade and Exchange Department said “in support of the drive to improve the efficiency of the Nigerian foreign exchange market, the Central Bank of Nigeria here by announces the under listed operational mechanism for the Bureau De change sediment of the market:

“The spread of the 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 foreign 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 the include withdrawal of operating licence. Where operators do not have any transaction within the period, they are expected to render nil returns. Please be guided accordingly and ensure compliance”. 

 Meanwhile the apex bank has also said that a price verification report will now be required from importers requesting for foreign exchange. The apex bank said that price verification report from the portal would be mandatory for all Form M requests from August 31, 2023. “Following the successful conduct of the pilot run and various trainings held with all the banks, the Central Bank of Nigeria hereby announces the Go- Live of the Price Verification System (PVS). All applications for Forms M shall be accompanied by a valid price verification report generated from the price verification portal. For the avoidance of doubt, by this circular, the price verification report has become a mandatory trade document precedent to the completion of a Form M,” CBN said. It advised authorised dealers to inform their customers of this development. The bank also said any case of infraction would be appropriately sanctioned.

Meanwhile the apex bank has also said that a price verification report will now be required from importers requesting for foreign exchange. The apex bank said that price verification report from the portal would be mandatory for all Form M requests from August 31, 2023. “Following the successful conduct of the pilot run and various trainings held with all the banks, the Central Bank of Nigeria hereby announces the Go- Live of the Price Verification System (PVS). All applications for Forms M shall be accompanied by a valid price verification report generated from the price verification portal. For the avoidance of doubt, by this circular, the price verification report has become a mandatory trade document precedent to the completion of a Form M,” CBN said. It advised authorised dealers to inform their customers of this development. The bank also said any case of infraction would be appropriately sanctioned.