CBN Issues New Directives on Street Trading of Foreign Currencies as Naira Falls

CBN Issues New Directives on Street Trading of Foreign Currencies as Naira Falls

  • The Central Bank of Nigeria has issued a directive to Bureaux de Change operators on street trading
  • The bank’s director of risk management, Blaise Ijebor, said street trading of foreign currencies is not allowed
  • He said the operators should be in offices where customers can go into and make transactions

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

The Central Bank of Nigeria (CBN) has banned street trading of foreign currencies by Bureau de Change (BDC) operators, citing the need to regulate the foreign exchange market properly.

CBN’s director of risk management, Blaise Ijebor, said street trading of foreign currencies is not allowed as the apex bank does not want BDCs under trees.

CBN speaks on street trading of currencies
CBN governor Olayemi Cardoso's management goes tough on street trading of foreign currencies Credit: Bloomberg
Source: Getty Images

CBN reviews capital requirements for BDCs

He said the traders should be in offices where customers can come in and change their currencies.

Read also

Naira reverses gain after 4-day winning streak, crashes in official and parallel markets

The apex bank issued a new directive to BDCs to reapply for operational licenses.

The bank also reviewed minimum capital requirements for Tier 1 BDC operators to N2 billion and N500 million for Tier 2 licenses.

According to reports, Ijebor said the capital increase was meant to give the BDCs enough money to invest in the necessary infrastructure to provide adequate services and comply with regulations.

Naira falls in all markets

The naira reversed its gains after a four-day winning streak, declining by 1.55% to close at N1,485.66 in the official market on Thursday, May 23, 2024.

The decline comes after the naira maintained a steady rise in the official market before snapping on Thursday, May 23, 2024.

The Nigerian currency fell to its lowest since March 20, 2024, when it exchanged at N1.492.61 per dollar.

Read also

Naira exchanges dollar at new rate after CBN makes changes to interest rate, others

In the past week, the naira has steadily climbed, gaining against the US dollar, beginning with N1,497.33 per dollar on Friday, May 17, 2024, a 2,45% gain.

Nigeria’s forex market records high dollar supply

Legit.ng reported that the Nigerian foreign exchange market has recorded a surge in forex supplies, which has led to the recovery of the Nigerian currency for the third day in a row.

Official figures from the FMDQ Exchange put the total forex turnover in the market on Tuesday, May 21, 2024, at $268.19 million, which has led to the naira maintaining stability in the market.

The figure represents an over 60% increase from the previous day at $161.41 million.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng

Online view pixel