CBN Governor Yemi Cardoso Moves To Ban Dollar To Naira Street Trading

CBN Governor Yemi Cardoso has moved to ban dollar to naira street trading.

Newsone Nigeria reports that the Central Bank of Nigeria (CBN) led by Yemi Cardoso, says it is considering stopping street trading, among other fresh guidelines, to Bureau De Change Operators in Nigeria amid the continued fluctuation of the Naira against the US dollar in the foreign exchange market.

This online news platform understands that the Central Bank disclosed in its draft Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria.

The apex bank plans to fix the minimum per capital share for Tier 1 and 2 BDC licenses to N2 billion and N500,000 million, respectively. This is a move away from the previously N35 million per capital share for general license.

“A Tier 1 BDC is authorized to operate on a national basis, can open branches, and may appoint franchisees, subject to the approval of the CBN.

A Tier 1 BDC (which is the franchisor) shall exercise supervisory oversight over its franchisees. All franchisees shall adopt their franchisor’s name, branding, technology platform, and rendition requirements.

A Tier 2 BDC is authorized to operate only in one state or the FCT. It may have up to three locations – a head office and two branches, subject to approval of the CBN. It is not permitted to appoint franchisees.”

The development comes amid a clampdown on illegal BDCs in Abuja, Lagos, Kano and Ibadan Oyo States by the operatives of the Economic and Financial Crimes Commission to stabilize the Naira against USD.