Naira slumps massively against dollar at black market

The Central Bank of Nigeria has announced new rules to Bureau De Change Operators in Nigeria, including the possibility of ending street trading, in response to the ongoing volatility of the Naira against the US dollar in the foreign exchange market.

The top bank revealed this on Friday in its proposed Revised Regulatory and Supervisory Guidelines for Nigeria’s Bureau De Change Operations.

For Tier 1 and Tier 2 BDC licenses, CBN intends to set the minimum capital share amounts at N2 billion and N500,000 million, respectively. This departs from the general license’s former capital share of N35 million.

“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.

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The franchisor, a Tier 1 BDC, is responsible for maintaining supervisory control over its franchisees. Every franchisee must use their franchisor’s name, logo, technological platform, and rendition specifications.

A Tier 2 BDC can only conduct business in one state or the Federal Territory. Subject to the CBN’s approval, it may operate from up to three locations: a main office and two branches. The appointment of franchisees is prohibited.

The development coincides with the Economic and Financial Crimes Commission agents cracking down on illicit BDCs in Abuja, Lagos, Kano, and Ibadan, Oyo State, to keep the Naira stable versus the US dollar.

According to ZINGTIE, at the end of business on Friday, the Naira’s value in the FMDQ market was N1,665.50 per US dollar, down from N1571.31 on Thursday. Meanwhile, on the black market,

On Friday, the value of the Naira was N1,750 to N1,800 per USD, up from N1,680.00 on Thursday.

Although the CBN has recently announced several FX interventions, the nation’s foreign exchange problem has continued.

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