CBN Decision To Halt FX Sales Does Not Stop Us From Providing Services – BDC Operators
The Association of Bureaux De Change Operators of Nigeria (ABCON) has said the recent decision by the Central Bank of Nigeria (CBN) to stop sale of foreign exchange, (FX) to its members does not stop them from providing FX to members of the public.
This was disclosed in a statement on Thursday, signed by President of ABCON, Aminu Gwadabe.
According to him the CBN decision does not invalidate the operating licence owned by BDC operators.
Gwadabe said 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,”
“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”, he said.
Gwadabe noted that 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.
“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.”
Gwadabe said 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,”
“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”, he said.
Gwadabe noted that 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.
“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.”
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.
Godwin Emefiele, governor of the apex bank, had accused BDC operators of turning away from their objectives.
