The Association of Bureau de Change Operators in Nigeria has tasked the Central Bank of Nigeria to review some of the policies guiding the money market, as it describes them as unfair to its members.
President, ABCON, Alhaji Aminu Gwadabe, told The Point in an interview that his group was calling for an emergency meeting of the National Executive Council to put up its demand for clarifications, as some market’s policies were totally unfair to the sub-sector.
He said, “Our recommendation is that, the CBN’s new thrice market days’ policy for BDCs per week should be reviewed to twice’s, with only the amount being reviewed up from $20,000 to $30,000 per market day.
“Also, both the banks and BDCs’ transaction rates should be merged to be the same. We also demand that BDCs should be allowed to return their unsold position to the CBN as is the practice by banks.”
Gwadabe added that the association would schedule a meeting with the CBN to get more details about the new directive. Top on its agenda, he said, would be the trading rates under the new directive and also, to ensure that the same compulsion of thrice bidding per week by BDCs also apply to the banks.
Meanwhile, the CBN had made it mandatory for all BDCs operating in Nigeria to access Foreign Exchange from it, thrice a week.
A statement from the CBN acting Director, Corporate Communications, Mr. Isaac Okorafor, indicated that the new directive would allow eligible travellers more access to foreign exchange and allow more liquidity to the market.
The CBN’s spokesperson said, “All BDCs shall henceforth access FOREX from the CBN on Mondays, Wednesdays and Fridays. It is compulsory that all BDCs access forex at least three times weekly. Any BDC that fails to access the FOREX window at least three times weekly shall have its licence reviewed by the CBN.”
According to Okorafor, the CBN has also authorised all commercial banks to buy and sell foreign exchange to travelers, whether they operate an account in the said bank or not.
He said that the banks were mandated to do this once a customer or non-customer presents relevant, valid travel documents such as visa and travel ticket.
“All travellers shall be attended to immediately at the banks’ counters. Any contravention shall be sanctioned by the CBN,” he cautioned.
