By Ademola Alawiye

Wednesday, 5 Jan 2011

The Central Bank of Nigeria has issued new rules guiding the sales of foreign currency in the country.

According to a statement on the CBN website, the revision of the guidelines is to prevent deposit money banks from selling the foreign currency purchased at its twice weekly auctions to bureaus de change and hotels.

The statement noted that the funds purchased from it at the auctions must be used for eligible transactions only.

The CBN had on November 3, 2010, in a circular referenced, FPR/DIR/CIR/FXM/01/004, cancelled the issuance of class ‘A‘ BDCs licences, following its review of the two-tier structure of the market.

It said in a statement signed by its Head, Corporate Affairs, Mr. Muhammed Abdullahi, that the latest appraisal of the policy initiative revealed gross abuses of the enhanced official funding of the Class A category of the BDCs and the negation of the expected benefits to the economy.

The statement said, ”The CBN has also been inundated with complaints from foreign countries that some Nigerian travellers indulge in cross-border transportation of large sums of foreign currencies in cash. Indeed, returns from the Nigerian Customs Services on foreign currency declaration by travellers show that large amounts, up to $3m cash, have been taken out of the country by individuals in single trips.”

The statement added that the Class ‘A‘ BDCs, whose licences had been withdrawn were, however, free to apply for Class ‘B‘ licences with the attendant privileges by fulfilling the stipulated licensing requirements.

Source: Punch