Nigeria's central bank issues new guidelines to currency traders

The apex bank made this known in a circular released on Wednesday, November 1, 2018, on the new code of corporate governance rules for Bureau De Change (BDC) operators.

The guidelines take effect from December 1, 2018.

Government agencies and institutions are believed to be hiding under the current multiple foreign exchange regimes to engage in the currency market.

They used their channels to get dollars at a lower rate, such as the CBN official market rate of N306 to the dollar and channelled it to the parallel market.

Kevin N Amugo, CBN's Director Financial Policy and Regulation Department, who signed the circular said the new corporate governance regulation is to further strengthen the institutions and reposition them to perform their statutory roles.

ALSO READ: CBN lists 34 firms operating as primary mortgage banks

The new regulation clearly states the composition of Board, ownership, operations and management of a Bureau De Change.

The banking regular said the new code of governance is to address some deficiencies in the operational effectiveness of BDCs which militate against the achievement of its objectives.

“To address this challenge, the CBN commenced the reform of the sub-sector and issued revised guidelines which, among others, reviewed upwards the minimum capital requirement for BDCs.

“To further strengthen the institutions and reposition them to perform their statutory roles, the CBN hereby issues the Code of Corporate Governance for BDCs in Nigeria to complement extant operational guidelines and regulations on BDC business,” the circular reads.

Bureau De Change operators seek CBN support

Last week, the Association of Bureau De Change Operators of Nigeria (ABCON) called for the support of the Central Bank of Nigeria (CBN) to enhance the operations of its live exchange rate website.

The currency dealers said the support will go a long way in improving transparency and stability in the nation’s foreign exchange market.

Meanwhile, the local currency, naira, firmed at an average of N362 to a dollar at the parallel market on Thursday, November 2, 2018.

Nigeria's central bank issues new guidelines to currency traders

JOIN OUR PULSE COMMUNITY!