Central Bank of
The figure, which amounted to N94.769 billion, representing a decrease of N3.740 billion or 3.8 per cent below the amount recorded in the preceding quarter, represented
According to the CBN's 2014 first 'Quarterly Statistical Bulletin', published by its
Within the review period, the CBN said the highest selling monthly average exchange rate was recorded in March, which stood at N160.65/$, compared to the previous quarter's N159.49/$ average.
Also, monthly forex purchases by the BDCs rose by 0.8 per cent to N31.743 billion, while the BDCs monthly sales increased by 0.6 per cent and 0.5 per cent to N32.13 billion in March, as against the levels recorded in January and February, respectively.
Meanwhile, the deadline for BDC operators to raise their capital base from N10 to N35 million, in line with the reviewed guideline for operating in the sub-sector, expires tomorrow.
The deadline was extended from the initial
The BDCs are now to raise their minimum capital base to N35 million on or before
A CBN's circular dated
It assured that interest based on ruling savings deposit rate would be paid on the mandatory cautionary fees deposit.
The apex bank in the circular signed by
It also warned that BDCs that fail to comply with the new requirement after the deadline will not qualify to be engaged as agents by licensed international money transfer operators for inward and outward money transfer business in the country.
The CBN had in a previous circular dated
It noted that the required minimum paid-up capital of BDCs had remained at "N10 million (whereas) the capital requirements of all other CBN-regulated entities have been reviewed upwards over the years, the one for BDCs has remained the same".
In addition to the new minimum capital, the apex bank pegged mandatory cautionary deposit at N35 million, which shall be deposited in a non-interest yielding account in the CBN upon the grant of Approval-in-Principle, besides pre-licensing fees such as "application fee--N100,000; licensing fee--N1 million; and annual renewal fee--N250,000".
The statement also lamented a situation where several BDCs are owned by the same promoters "in order to buy foreign exchange multiple times from the CBN Window, which is clearly related to the low level of capital requirements for licensing BDCs".
Henceforth, the statement added, "ownership of multiple BDCs is not permissible, and would be punishable if detected.
"All existing BDCs and those currently operating with a Final Approval Letter are required to comply with the requirement on mandatory cautionary deposit by
According to the CBN boss, the bank was committed to stemming the depletion of the country's foreign reserves from unproductive transactions.
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