The Central Bank of Nigeria (CBN) has reduced the number of Bureau de Change (BDC) dealers to 2,991, down from the previously approved 5,689 dealers.
On Wednesday, the CBN released a list of approved BDCs, indicating that the licenses of 2,698 BDCs have been revoked.
In 2022, the CBN had previously approved a list of 5,689 black market dealers, signifying a significant growth in the number of operators from 74 in 2005 to 5,689 in 2021.
During the tenure of former CBN governor, Godwin Emefiele, the sale of foreign exchange to BDCs was prohibited due to concerns regarding round-tripping and involvement in illicit financial activities.
Under the new administration, there are recommendations to implement crucial reforms, including raising the capitalization requirements for BDC operators and allowing banks in Nigeria to act as primary dealers in the forex market.
