CBN halts branch operations by bureaux de change

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The Central Bank of Nigeria, CBN has ordered bureaux de change (BDCs) to close all branches within 90 days, saying branch operations is no longer allowed in the subsector. This directive was contained in the revised guidelines for BDCs released by the apex bank.

According to the guidelines, issued via a circular titled: Revised Operational Guidelines for Bureaux De Change in Nigeria “Bureau De Change is licenced as a unit institution. No Bureau De Change shall have a branch office outside its registered office.

All Bureaux De Change under the 2002 Guidelines that have branches are required to close such branches within 90 days of the 2015 guidelines. “The CBN also banned BDCs from business relationship with street traders in foreign currencies. It stated: “Similarly, it shall be a ground for the revocation of Licence should any street trader in foreign currencies be found to have any business relationship with a licenced BDC.

Meanwhile CBN plans to raise a total of N1.22 trillion from treasury bills sale in the first quarter of 2016. The central bank said it would auction N245.77 billion worth of 91 day bills and N238.51 billion worth of 182-day paper between December 17 this year and March 3, 2016.

In addition, it would sell N735.54 billion worth of 364 day treasury bills in the same first quarter of next year. The apex bank issues treasury bills regularly as part of monetary control measures to help manage the volume of liquidity in the system and also to checkmate inflation.

The Monetary Policy Committee (MPC) had noted at its last meeting the continued moderation in month on month inflation and reaffirmed its commitment to price stability, stressing the need for complementary supply side policies as part of an overall strategy to lock in inflation expectations.

Broad money supply (M2) in the country contracted by 3.75 per cent in October, 2015, over the level at end-December, 2014. Also, annualised, M2 declined by 4.5 per cent, which was significantly below the growth benchmark of 15.24 per cent for 2015.

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