CBN Limits BDC Operations To Si?ngle Branches | Independent Newspapers Limited
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CBN Limits BDC Operations To Si?ngle Branches

Posted: Dec 12, 2015 at 9:51 pm   /   by   /   comments (0)

By Bamidele Ogunwusi


The Central Bank of Nigeria (CBN) yesterday restricted Bureaux de Change (BDC) in the country to one single branch operations.

According to a new guideline any other outlet must be closed within by end of March (that is 90 days from the January 1, 2016 commencement date).

This, according to the CBN, is in a bid to curb speculation after the long slide in oil prices hit its dollar reserves and currency.

The circular  also ordered retail money exchanges to deposit a mandatory cautionary deposit of N35 million  in an account with the CBN, in addition to a minimum capital requirement of N35 million.

The CBN has been struggling to shore up its naira currency hard hit by the plunge in oil prices, Nigeria’s main export, which started late last year. The new guideline is the latest measure which has cramped dollar demand and the banking sector.

The apex bank said BDCs, which account for less than five percent of total dollar trades in Nigeria, may obtain dollars from private sources including its window to fund travel allowance of up to $5,000.

It however added that those wishing to sell more than $10,000 shall be required to disclose the source.