Naira Depreciates Against Dollar Amid CBN’s New Guidelines For BDC Operators

The Naira depreciated against the Dollar for the first time since last Thursday in the foreign exchange market, coinciding with the Central Bank of Nigeria’s issuance of fresh guidelines to Bureaux De Change (BDC) operators.

According to FMDQ data, the Naira traded at ₦1485.66 per Dollar on Thursday, down from N1462.59 recorded on Wednesday.

This represents a ₦23.07 loss compared to the previous day’s trading rate.

In the parallel market, the Naira also depreciated, trading at ₦1460 per Dollar on Thursday, compared to ₦1450 on Wednesday. This marks the first depreciation since the Naira shed ₦73 against the Dollar seven days ago.

The depreciation comes barely 24 hours after the Central Bank of Nigeria ordered BDC operators to re-apply for licenses, a move aimed at regulating the foreign exchange market and curbing speculative trading.

The new guidelines are part of the CBN’s ongoing efforts to stabilize the Naira and ensure transparency in BDCs’ operations.

Already, BDC operators across Nigeria have expressed strong reservations about the Central Bank of Nigeria’s (CBN) recent directive mandating them to reapply for licenses under new, stringent guidelines.

The President of the Association of Bureau de Change Operators of Nigeria (ABCON),  Aminu Gwadebe, voiced significant concerns regarding the heightened capital requirements and the compressed timeline for compliance.

He remarked, “The requirement is huge. It is not in line with global practices… We should be careful so that we will not throw away our experience, capacity and investment.”