The Central Bank of Nigeria sets new guidelines for Nigeria’s Bureau De Change. Nigeria’s apex bank has been quite busy as of late, and right now, it has set new guidelines for the country’s Bureau De Change.
New Guidelines for Nigeria’s Bureau De Change
The Central Bank of Nigeria (CBN) is taking decisive steps to address the concerning state of Nigeria’s foreign exchange (FX) market. In addition to purportedly seeking to regulate the exchange of naira for dollar-denominated stablecoins on cryptocurrency exchanges, the CBN has introduced new guidelines for Bureau De Change (BDC) operators.
The Revised Regulatory and Supervisory Guidelines for Bureau De Change Operators
According to the Revised Regulatory and Supervisory Guidelines for Bureau De Change Operators recently issued by the CBN, there are significant changes to the financial requirements for BDC operators. Specifically, the share capital requirement for BDC operators has been raised to ₦2 billion ($1.3 million). Additionally, the licensing fees for both Tier 1 and Tier 2 operators have been substantially increased from ₦35 million ($23,824) to ₦200 million ($236,137).
The New Licensing Fees For Both Tier 1 and Tier 2 Operators
Tier 1 operators are now required to pay ₦1 million ($680) for the license application and ₦5 million ($3,500) as the licensing fee. Meanwhile, Tier 2 operators must pay ₦250,000 ($680) for the application and ₦2 million ($1,361) for the license fee.
In addition to the increased share capital requirements, Tier 1 operators are mandated to provide a caution deposit of ₦500 million ($340,343). Similarly, Tier 2 operators must maintain a minimum share capital of ₦200 million ($136,137) and provide a caution deposit of ₦50 million ($34,000).
the CBN’s Commitment To Strengthening Oversight
These regulatory changes signify the CBN’s commitment to strengthening oversight and ensuring the stability of the FX market in Nigeria. By raising the financial requirements for BDC operators, the CBN aims to enhance the resilience and integrity of the foreign exchange market amid ongoing challenges.
MORE RELATED POSTS
