The Central Bank of Nigeria (CBN) has launched a new digital platform called the BDC FX Tracker to monitor foreign exchange transactions by Bureau De Change (BDC) operators. The initiative, announced on Thursday, mandates that BDCs must resell any unused dollars within 24 hours of purchase, a move aimed at curbing hoarding and improving transparency in the forex market.
How the BDC FX Tracker Works
The BDC FX Tracker is an online system that requires all licensed BDCs to log their daily forex purchases and sales in real time. According to a circular signed by the CBN’s Director of Trade and Exchange, Dr. O.S. Nnaji, the platform will enable the central bank to monitor the flow of dollars and ensure that BDCs comply with the new 24-hour resale rule. “All BDCs must ensure that any foreign currency purchased from the CBN or other authorized dealers that is not sold to end-users within 24 hours is immediately returned to the CBN,” the circular stated.
Impact on the Naira and Forex Market
The CBN’s latest directive is part of broader efforts to stabilize the naira, which has faced persistent pressure in the parallel market. By forcing BDCs to quickly offload unused dollars, the central bank aims to increase supply and reduce speculative hoarding. Analysts say the move could help narrow the gap between the official and parallel market rates. “This is a positive step towards transparency, but enforcement will be key,” said financial analyst Tunde Ogunlana. “If BDCs actually comply, we could see a more efficient allocation of forex.”
Penalties for Non-Compliance
The CBN warned that any BDC found violating the 24-hour resale rule or failing to use the FX Tracker will face sanctions, including suspension or revocation of their operating license. The central bank also stated that it will conduct regular audits to ensure compliance. “We will not tolerate any form of malpractice that undermines the stability of the forex market,” the circular added.
Reactions from BDC Operators
Some BDC operators have expressed concerns about the feasibility of the 24-hour resale requirement, citing low demand in certain periods. “It’s not always easy to find buyers within 24 hours, especially for large amounts,” said Alhaji Aminu Ibrahim, a BDC operator in Kano. “But we will try to comply as much as possible.” Others welcomed the tracker, saying it could reduce the influence of black market operators.
Broader Context of CBN Forex Reforms
The BDC FX Tracker is the latest in a series of reforms by the CBN under Governor Olayemi Cardoso to unify the exchange rate and attract foreign investment. In recent months, the central bank has cleared a backlog of forex forward contracts and tightened regulations on BDCs. The CBN has also increased dollar sales to BDCs to boost liquidity. According to data from the CBN, the naira has appreciated slightly in the official market since the reforms began, but the parallel market rate remains volatile.
