CBN prunes number of BDCs to 2,991
By Patience Ikpeme
In an effort to combat concerns of round tripping and illicit financial activities, the Central Bank of Nigeria (CBN) has significantly reduced the number of Bureau de Change (BDC) dealers from over 5,000 to 2,991.
The CBN this week published a list of approved BDCs, indicating that the licenses of 2,698 BDCs may have been revoked.
This is a substantial drop from the 5,689 black market dealers approved in a previous list published in 2022.
BDCs play a crucial role in determining the exchange rate in Nigeria, with their number of operators experiencing significant growth over the years.
Former CBN governor Godwin Emefiele prohibited the sale of foreign exchange to BDCs due to concerns of illegal financial practices.
Under Tinubu’s administration, key reforms were recommended, such as increasing capitalization requirements for BDC operators and allowing Nigerian banks to act as primary dealers in the forex market.
Since the naira was floated by the CBN in June, the currency has depreciated, with the exchange rate hitting N795.28 at the Investors’ and Exporters’ FX window.
The naira also closed at N820 per dollar, N1,095 per British pound, and N905 per Euro at the parallel market on Tuesday.
