In a bid to stabilize the Naira, sanitize the foreign exchange (Forex) market and streamline Bureau de Change (BDC) operations in the country, the Central Bank of Nigeria (CBN) has disallowed commercial banks, public office holders, telecommunications companies and non-governmental organizations from owning and operating Bureau de Change firms.
In reading the riot act to the Bureau de Change operators, the CBN clarified that commercial banks, public officers and other entities are no longer allowed to own Forex trading firms in the country.
Stressing that certain groups have been prohibited from owning or promoting BDCs in Nigeria, the apex bank maintained that the move is part of ongoing efforts to safeguard the Naira from further depreciation against the dollar in the foreign exchange market.
In its latest guidelines for BDC operators released on Wednesday, the CBN specified that deposit money banks (DMOs), other financial institutions, public officers, non-governmental organizations (NGOs), non-Nigerian individuals, non-residents, unregulated companies, telecommunication providers, among others will no longer be eligible to own or operate BDCs in the country.
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The CBN also stressed that individuals such as staff of financial regulatory agencies, regulated financial service providers, government officials, NGOs, cooperative societies, charitable organizations, academic and religious institutions and more are also not allowed to have stakes in BDCs.
The list of prohibited entities also extends to shareholders in other BDCs, sanctioned individuals and entities, as well as other persons designated by the CBN, adding that by implementing the restrictions, the CBN aims to ensure that only qualified and reputable individuals and organizations are involved in BDCs operations in Nigeria.
It would be recalled that some good-spirited individuals and watchers of the financial and socio-economic sectors of the Nigerian economy, as well as thejobufacturers Association of Nigeria (MAN), had earlier expressed concerns over the increasing involvement of some unscrupulous individuals and groups in the operations of BDCs, which they said, had negatively impacted the economy and free fall of the Naira.
