Saturday, September 18, 2021
MARKET UPDATE

TheCable

Advertisement

BDC operators: CBN’s decision to halt FX sales doesn’t hinder us from providing service

BDC operators: CBN’s decision to halt FX sales doesn’t hinder us from providing service
July 29
20:18 2021

The Association of Bureaux De Change Operators of Nigeria (ABCON) says a recent decision by the Central Bank of Nigeria (CBN) does not hinder its members from providing foreign exchange (FX) to members of the public.

Advertisement

On Tuesday, CBN announced that it would discontinue sales of FX to BDCs.

Godwin Emefiele, governor of the apex bank, had accused BDC operators of turning away from their objectives.

But in a statement on Thursday, Aminu Gwadabe, president of ABCON, said BDC operators are still providing FX services.

Advertisement

He said the CBN decision does not invalidate the operating licence owned by BDC operators.

Gwadabe added that while the dollar sale from CBN had helped in enhancing supply, BDCs are empowered to source FX from other sources and also to provide various services to members of the public.

“BDCs are licensed to provide retail FX services, including buying from the public and also selling to end-users for allowable transactions namely Personal Travel Allowance (PTA), Business Travel Allowance (BTA), payment of medical and school fees,” he said.

Advertisement

“While the CBN has stopped dollar sale to BDCs, it has not cancel their operating licenses, or banned them from providing FX services to members of the public.

“At ABCON, we urge our members to see the CBN pronouncement has a wake up call and opportunity to widen their customer base and deepen their business.”

Gwadabe said ABCON has always worked with the CBN to ensure proper working of the FX market.

He said the association would engage with the apex bank to address and resolve all the issues that led to the recent action, including identification and sanctioning of erring BDCs where necessary.

Advertisement

“In addition to this, and in view of the fact that BDCs have been very effective in ensuring stable exchange rate, ABCON will work with relevant stakeholders including law enforcement agencies to develop a National BDC Policy with the aim of enhancing the contribution of the BDC subsector to the nation’s economy,” he said.

“To this end, ABCON has called for a zonal nationwide meeting of members to discuss the action of the CBN and obtain contribution for the National BDC Policy.”

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment