The Central Bank of Nigeria (CBN) has thrown 2,698 Bureau de Change (BDCS) out of business, while retaining 2,991 others.
The CBN published a list of approved BDCS today, July 19, in a document titled: ‘Approved BDCs.’ The document revealed that the licenses of the 2,698 BDCs have been revoked.
A similar list was published by the apex bank last year, which approved 5,689 black market dealers.
BDCs play a significant role in determining the exchange rate in Nigeria.
The number of operators has experienced substantial growth, increasing from 74 in 2005 to 5,689 in 2021.
Suspended CBN Governor, Godwin Emefiele, later prohibited the sale of foreign exchange to BDCs due to concerns of round tripping and involvement in illicit financial activities.
Under President Bola Tinubu’s administration, recommendations were made to implement key reforms such as increasing the capitalisation requirements for BDC operators and allowing Nigerian banks to act as primary dealers in the forex market.
Since the floating of the naira by the CBN in June, the currency has depreciated, with the exchange rate reaching N795.28 at the Investors’ and Exporters’ FX Window.
At the parallel market, the naira closed at N820 per dollar, N1,095 per British pound, and N905 per Euro.