As a response to the depreciation of the Nigerian Naira and adverse effects on inflation and economic stability, the Central Bank of Nigeria initiated significant measures in the second half of 2023 to stabilize and strengthen the Naira against major foreign currencies. The CBN attributes this currency depreciation partly to the actions of foreign currency speculators who exploit price fluctuations for profit. On May 22, 2024, the CBN issued the new “Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria”, aimed at reforming Bureau De Change operations in the country.
These New Guidelines, issued under the Banks and Other Financial Institutions Act (BOFIA) 2020, replace the 2015 Revised Operational Guidelines and any prior circulars or guidelines on BDCs (the “Previous Guidelines”). Effective from June 3, 2024, the New Guidelines introduce stringent corporate governance requirements and enhanced IT integration. It also provides a comprehensive regulatory framework for the licensing and operation of BDCs, with implications for financial technology companies operating within the sector, reflecting the CBN’s intent to more closely regulate and monitor the FX sector.
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