"Full List": Top 10 Approved BDCs to Get $15.7 Million Weekly From CBN to Stabilise The Naira

• The Central Bank of Nigeria has approved the allocation of $20,000 weekly to Bureau de Change operators in Nigeria
• The bank said the operators will obtain the Forex at the cost of $1,301 per dollar and resell at a margin of one per cent
• A CBN list shows that there are about 785 licenced BDCs in Nigeria and will get about $15.7 million weekly to boost the naira

Legit. ng's Pascal Oparada has reported Tech, Energy, Stocks, Investment and the Economy for over a decade.

The Central Bank of Nigeria has commenced the sale of $15.7 million to Bureau de Change operators across Nigeria to prop up the local currency.

The apex bank said it will sell $20,000 to each approved BDC at N1,301 per dollar, while the BDCs are to sell the dollars to end users at a margin of not more than 1% of the purchase price.

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CBN moves to save the naira

Reports say the directive is in the bank's circular issued on February 27, 2024, signed by its Trade and Exchange Department, Hassan Mahmud.

The statement partly reads:

'To this end, the CBN has approved the sale of foreign exchange to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions. $20,000 will be sold to each BDC at N1,301/$ – (representing the lower band rate of executed spot transactions at NAFEM's trading day, as of today, February 27 2024).

However, data from CBN obtained by Legit.ng shows that the apex bank licenses 785 Bureau de Change (BDC) operators in Nigeria to operate in Nigeria.

Analysts say the development is a desperate move by CBN to save the tumbling naira after the bank announced that it has stopped intervening in the Forex market.

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Top 10 approved BDCs in Nigeria

• 1 HR BDC LTD
• 10-20 TIMES BDC LTD
• 171 BDC LTD
• 1717 BDC LTD
• 19TH BDC LTD
• 1ST MONEY EXCHANGE BDC LTD
• 2017 BDC LTD
• 2019 BDC LTD
• 2022 BDC LTD
• 205 INNOVATIVE BDC LTD ( FORMERLY TUGE BDC LTD)

CBN imposes new capital requirements on BDCs

Legit.ng reported that the Central Bank of Nigeria (CBN) has proposed new regulations to increase Nigeria's minimum requirements for Bureau de Change (BDC) operators to N2 billion and N500 million for Tier 1 and Tier 2 licences.

The latest development changes from the previous requirement of N35 million for a general license.

The new directive is in the Exposure draft in the Revised Regulatory Supervisory Guidelines for Bureau De Change operations in Nigeria.

Source: Legit.ng