Bureaux de Change operators reject new CBN’s forex policy

The Association of Bureaux De Change Operators of Nigeria (ABCON) has rejected the new foreign exchange directive by the Central Bank of Nigeria (CBN) which mandates all Bureaux De Change operators (BDCs) to access dollars from the bank at least three times weekly.

The apex bank, in a statement on Saturday, had mandated all BDCs to purchase dollars at least three times in a week to avoid their licenses being reviewed by the bank.

This, according to CBN, was to strengthen the naira and ensure eligible travelers in the country are able to access forex for the Business Travel Allowances (BTA), Personal Travel Allowances (PTA), school fees and medical bills payment.

According to the statement, “All Bureaux de Change (BDCs) shall henceforth access dollars from the CBN on Monday’s, Wednesdays and Fridays. It is compulsory that all BDCs access currency at least three times weekly.”

In a separate statement issued to the effect by AMCON President, Aminu Gwadabe, the BDCs said the directive was made to frustrate the sector.

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Gwadabe, however, called for an urgent review of the BDC’s dollar purchase rate to align with that of commercial banks.

“The CBN’s directive at this time of our operational difficulties is no doubt precarious and vague and was intended to emasculate a sector that has helped the system to stabilize and thus unacceptable.

“The rate between the banks and BDCs should be merged for uniformity and fairness. A situation where the banks buy dollar from CBN at a lower rate than the BDCs is not helping the market stability drive,” he said.

As at 11:30 am on Monday, May 28, 2018, BDCs buy a dollar at N364 while CBN pegged its exchange rate at N305.90/USD.

Gwadabe further urged the government to assist them as the sector was facing several challenges such as multiple exchange rate, abnormal bank charges, Value Added Tax (VAT) and Commission on Turnover (COT), parallel market operators and illegal International Money Transfer Operators (IMTOs).

Meanwhile, CBN had also mandated all Deposit Money Banks to buy and sell foreign currency to travelers (both customers and non-customers) upon presentation of relevant valid travel documents such as visa and tickets over the counter.

By Oluwasegun Olakoyenikan…

 

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