Despite subtle protests and allegations that the Central Bank of Nigeria (CBN) seems poised to run them out of business by its directive that they buy foreign exchange three times weekly, the apex bank, on Monday ordered licensed Bureaux De Change operators in the country to ensure their accounts are funded.
In a circular by Mrs. O.L. Ahuchogu, Acting Director of Trade & Exchange Department, the CBN directed the BDCs would purchase forex on Mondays, Wednesdays and Friday’s, following which they are “to ensure that their accounts with the banks (Deposit Money Banks) are duly funded with the equivalent Naira proceeds on Tuesdays, Thursdays and Fridays.”
In the circular to all authorized dealers, bureau de change operators and the general public, titled “Development in the foreign exchange market Re: Review of weekly foreign exchange cash sales to Bureau De Change (BDC) operators,” the CBN said the “increased frequency of sales is in its efforts to enhance the accessibility of foreign exchange especially to the Bureau De Change (BDC) segment.”
The circular urged authorized dealers to continue selling foreign currencies for travel related invisible transactions to customers and non-customers over the counter upon presentation of relevant travel documents (passport, air ticket and visa).
Again, the circular advised authorized dealers and BDC operators “to ensure strict compliance with the provisions of the extant regulations on the disbursement of foreign exchange cash to travelers, as any case of infraction will be appropriately sanctions.”
Rejecting the CBN’s earlier directive at the weekend, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, called for an alignment of the dollar purchasing rate by his members to ensure uniformity and fairness.
According to him, “a situation where the banks buy dollar from the CBN at a lower rate than the BDCs is noT helping the market stability drive. Besides, ABCON should be considered for disbursement fees in the collection centers to ameliorate the new assignments”.
Gwadabe lamented that the BDC sector is confronted with many 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), urging the government to come to their aid.