Trading

NIGERIAN GOVT ISSUES WARNING TO FOREX TRADERS

The Nigerian government has directed Bureau De Change (BDCs) operators not to sell foreign exchange above a two percentage-point margin from the buying rate.

The government, through the Central Bank of Nigeria (CBN), also directed authorized dealers not to sell foreign exchange to any BDC totalling more than 30,000 US dollars per week.

In a statement received here Tuesday, the central bank said a BDC should nominate its preferred dealer or a bank to procure the said amount from only that bank in a week.

It added that the selling rate by the dealer to BDCs should be the buying rate from International Money Transfer Operators (IMTO) plus a margin not exceeding 1.5 per cent.

The statement also said that funds purchased by BDCs should be eligible for Business Travel Allowance, Personal Travel Allowance, Oversees School Fees and Oversees Medical Fees.

The statement warned that any BDC, which violated the above directives, would be punished accordingly.

Source: NAM NEWS NETWORK