The naira is making a gradual rebound, rising to N1,620 per dollar as the Central Bank of Nigeria (CBN) mounts pressure on financial institutions and Bureau de Change Operators.
Trading data across the BDC segment of the Nigerian Foreign Exchange Market showed that operators buy the dollar for N1,620 and sell at N1,630.
This is against the N1630 and N1635 per dollar traded on Tuesday, January 28, 2025.
“There is a lot of pressure on BDCs especially with regards to recapitalisation. The CBN has also tightened rules on inflow and BDcs are still monitoring the situation,” a trader at Zone 4, Usman Bamaiyi told THE WHISTLER.
The CBN has tightened its foreign exchange regulations to trim the abuse of the country’s forex market by BDCs and the financial service industry.
Last year, the CBN suspended licence renewal for BDC operators pending when they meet a new N2bn or N500m capital requirement for either a ‘Tier 1’ or ‘Tier 2’ BDC licence.
On Monday, the bank directed BDCs that paid for 2025 licence renewal to apply for refund to the account from which the payment emanated.
“The CBN remains committed to fostering stability, transparency, and efficiency in the foreign exchange market while ensuring that operators align with the revised regulatory framework,” the apex bank said.
Also, the bank also released a Foreign Exchange (FX) Code, which applies to all authorised dealers licensed by the CBN under the CBN Act 2007, and the Bank and Other Financial Institutions Act (BOFIA) 2020.
The new code requires all market participants to conduct a self-assessment and submit to the CBN a report on the institution’s level of compliance with the FX Code by January 31, 2025.
“All market participants will thereafter be required to submit to CBN a detailed compliance implementation plan that is approved and signed by its Board along with the extracts of the Board meeting,” the bank said.
