As the Nigerian currency, the naira continue to slide in its value against the dollar and other international currencies, the Central Bank of Nigeria (CBN) has ordered operators of Bureau De Change (BDC) that from 2016 to stop street hawking of foreign exchange (forex).
The directive, contained in a revised guideline for their operations, also outlaws having any business dealings with the illegal operations popularly known as ‘black market’, which may lead to revocation of their licences.
Meanwhile, the end to the free fall of Nigeria’s currency at the parallel foreign exchange market may not be in sight after all, as it fell to new low of N265 to the dollar yesterday.
The street hawking of dollars is prevalent in Lagos, Abuja, Port Harcourt and in many other major cities in the northern Nigeria, with allegations of connivance levelled against BDCs.
The revised rule states that every BDC shall be required to open both domiciliary and naira accounts with authorized banks in Nigeria and inform the CBN accordingly, as the accounts shall be used solely for day-to-day operations.
The document, while listing the “non-permissible” for licenced BDC operators, which include engaging in off-shore business or maintaining foreign correspondence relationship; any trade related import activities; maintaining foreign account in whatever form; round-tripping of foreign exchange acquired through the CBN window; and carrying on capital market activities, emphasized that street trading of foreign exchange can no longer be tolerated.
