CBN Releases Reversed Regulatory And Supervisory Guidelines For Bureau De Change Operations In Nigeria, Here Are Key Points :

1● Non-Eligible Promoters: Certain entities like banks, government agencies, NGOs etc are not allowed to have ownership stake in BDCs.

2● Permissible Activities: BDCs can buy and sell foreign currencies, issue prepaid cards, serve as cash points for money transfer operators etc. They cannot take deposits, grant loans, deal in gold or engage in capital market activities.

3● Sources of Foreign Currencies: BDCs can source forex from authorized dealers, travellers, hotels, embassies etc. Large transactions above $10,000 require declaration of source.

4●Sale of Foreign Currencies: BDCs can sell forex for travel, medical bills, school fees etc up to specified limits per customer annually. At least 75% of sale must be via transfer, 25% can be cash.

5● Categories of BDCs: There are 2 tiers of BDCs - Tier 1 with national presence, branches and franchises; Tier 2 restricted to 1 state with max 3 locations.

6●Financial Requirements: Minimum capital of N2 billion for Tier 1 and N500 million for Tier 2. Other fees and deposits specified.

7● Licensing Process: Two stage process - Approval in Principle and Final Licence, each with specified document requirements.

8● Corporate Governance: Board composition, assessment of propriety, fitness requirements for directors and senior management specified.

9● Operations: Must verify customer identity, keep transaction records, connect to CBN systems, display rates clearly etc.

10●Supervision: Specified regulatory returns must be rendered, records available for inspection, compliance with guidelines required.

11● Franchising Standards: Standards specified for Tier 1 BDCs appointing franchises regarding policy, monitoring, branding etc.

13● Prudential Requirements: Specified limits on open position, fixed assets, borrowings, dividend payment etc.

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https://www.thisdaylive.com/index.php/2024/02/24/cbn-introduces-sweeping-reforms-to-sanitise-bdc-operations



The regulation, however, barred BDCs from engaging in street-trading, maintaining any type of account for any member of the public, including accepting any asset for safe keeping/custody; taking deposits from or granting loans to members of the public in any currency and in any form; retail sale of foreign currencies to non-individuals, except for BTA; international outward transfers; engaging in off-shore business or maintaining foreign correspondent relationship with any foreign establishment; and opening or maintaining any account with any bank or financial institution outside Nigeria among others.




Also, BDCs are required to limit the sale of FX to Personal travel allowance (PTA); Business Travel Allowance (BTA) – provided that a person who receives BTA on behalf of a non-individual entity shall not be entitled to PTA for the same period.Sale of FX by BDCs shall also be for payment of medical bills, school fees; and repurchase of unused Naira from a non-resident from whom the BDC had sourced foreign currency in the course of that visit.The bank said a beneficiary of BTA or PTA shall receive up to 25 per cent of the foreign currency in cash. In other words, at least 75 per cent of any sale of foreign currency by a BDC shall be transferred to the customer electronically (to the customer’s Nigerian domiciliary account or prepaid card).

Nigerians like to cry of pain, but do not like to obey rules and regulations

We believe too much miracles

Good

It is only in Nigeria that they sell dollars and other foreign currencies on the streets like biscuits

Not enough

Ban BDC
BAN BDCS
BAN BDCS NOW!!!

Biodun556:
It is only in Nigeria that they sell dollars and other foreign currencies on the streets like biscuits

Who told you that?…you guys like supporting bad leaders and then turn around to look for who to blame.

Last year you were all over nairaland supporting Tinubu who did not attend a single interview. This makes me wonder if you guys are normal human beings?.

Now see where his policies has landed us!!!.

Agbado me ti tun

Even if god come from heaven come rule una for this country, una no go still dey satisfied.. human being must find faults shaaaa

Smithkafors:



Who told you that?…you guys like supporting bad leaders and then turn around to look for who to blame.

Last year you were all over nairaland supporting Tinubu who did not attend a single interview. This makes me wonder if you guys are normal human beings?.

Now see where his policies has landed us!!!.

We are a country of individuals. In turkey the other day, we almost presented our kidneys just to change 20 Euro to Turkish lira. Only in nigeria will a BDC sell you 2 million dollars without any form of documentation or records. They need to stop all BDC activities in the country. Any serious business should be done in naira

This is not enough. They should put more restrictions or ban them totally.

This is commendable

BDC should be regulated

Now What is the difference between BDCs and Binance that you partially banned? Idiotic compound fools.

Ban BDCs totally and delist and stop support for anything NGN on binance.

Sit back and watch a little bit of sanity restored.

Although the fundamentals are very very appalling therefore For the foreseeable future we will keep buying until an honest patriotic genuine serious leader that has the political will and interest of the country at heart emerges.

The lacunae in this recent guidelines can be taken advantage of by the BDCs.

The CBN to my mind is still chasing shadows trying to stabilize the naira by clamping down heavily on the BDCs.

Diversify from a mono product economy, boost export by supporting MSMEs, criminalize the possession above 1000 dollars in cash for no valid reasons, and prosecute hotels and schools which charge for services in dollars.

De-dollarizing our economy may just be the panacea to stabilizing the naira and reducing the rush to adopt the dollar as a store of monetary value.

tollyboy5:
This is not enough. They should put more restrictions or ban them totally.

You want lazy aboki to revolt?
They are used to easy huge profit and you expect gov. to stop them suddenly without them fighting back?

The free fall of naira is a matter of demand and supply of dollars, as long as the cbn does not supply enough dollars to satisfy the demand for dollars,all these measures would have little or no effects whatever.

BDC has been existing for years, so why is it now that they are dangerous to dollars? If u can't get dollars thru bdc, and banks don't sell dollars to u, what will u do.

G

Kwaramustgoodag:
BDC has been existing for years, so why is it now that they are dangerous to dollars? If u can't get dollars thru bdc, and banks don't sell dollars to u, what will u do.

How won't you be able to get dollars from the BDC? Read the OP post and stop commenting off point.

Nice one, there's nothing you guys cannot do😏

VeeVeeMyLuv:
Now What is the difference between BDCs and Binance that you partially banned? Idiotic compound fools.

Ban BDCs totally and delist and stop support for anything NGN on binance.

Sit back and watch a little bit of sanity restored.

Although the fundamentals are very very appalling therefore For the foreseeable future we will keep buying until an honest patriotic genuine serious leader that has the political will and interest of the country at heart emerges.

The BDC is also an employer of labour, it can't just be outrightly ban, If this measure to curtail them doesn't work then we can call for the outright banning. BDC is doing more harm than good

Good! Your office should be at the border not streets. Give Naira to incoming travellers and receive their foreign currencies in exchange. If you want to sell the received foreign currencies, the margin should be minimal infarct shouldn't be more than N50; not the current N300.

It is only in Nigeria they sell dollars on the streets.

greenermodels:
The free fall of naira is a matter of demand and supply of dollars, as long as the cbn does not supply enough dollars to satisfy the demand for dollars,all these measures would have little or no effects whatever.

Fake economist! Have you not heard human wants are unlimited? If you like bring the US Federal reserves to Nigeria, inasmuch the corrupt trillions of naira is still with the corrupt class, they will buy all...

The CBN has only scratched little, there are still loopholes to be exploited even in this soft rules and guidelines and they intentionally left the windows open for them not to block themselves from stealing!

greenermodels:
The free fall of naira is a matter of demand and supply of dollars, as long as the cbn does not supply enough dollars to satisfy the demand for dollars,all these measures would have little or no effects whatever.

All the fundamental economic indicators are terrible.

Any serious govt will not allow market forces to do anyhow with its currency. Abeg it is not a commodity.

We never even talk about the fiscal irresponsibility or the poor perception of governance or insecurity. These things contribute.

Nobody is banning bdc. You guy don't understand that bdc are the business of the rich and politicians. Always read in-between the lines. The

Okay

Smithkafors:



Who told you that?…you guys like supporting bad leaders and then turn around to look for who to blame.

Last year you were all over nairaland supporting Tinubu who did not attend a single interview. This makes me wonder if you guys are normal human beings?.

Now see where his policies has landed us!!!.

Most of you don’t like to hear the true. All you just want to do is pass the blame to the Government.

This FX issue is caused by the greedy masses, so many people have now turned Dollar to a commodity they think they can trade for quick profit.

I know so many people that have taken advantage of the situation, they are normal Nigerians. Buying dollars they don’t need everyweek so they can sell at a profit. Forgetting or not even caring about the after effect - Inflation (which they would still lose the profit they have made to)

As you lay your bed you lay on it. Let’s say the truth Nigerians are greedy people.

Biodun556:
Nigerians like to cry of pain, but do not like to obey rules and regulations

We believe too much miracles

Who r the No1 rule breakers?
Politicians.

Restructure Nigeria so that every region will become productive by force

femicyrus:

You want lazy aboki to revolt?
They are used to easy huge profit and you expect gov. to stop them suddenly without them fighting back?

R they more powerful than the state?
Who cares if they fight back?

And why is it only hausas that r into BDCs?

🫤

Smithkafors:



Who told you that?… you guys like supporting bad leaders and then turn around to look for who to blame.

Last year you were all over nairaland supporting Tinubu who did not attend a single interview. This makes me wonder if you guys are normal human beings?.

Now see where his policies has landed us!!!.

The guy you quoted said it's done only in Nigeria. Educate the forum by telling where else it's done.