By Niyi Olaoye
The Central Bank of Nigeria (CBN) on Wednesday said that the Bureau De Change (BDCs) operators in the country should not lose hope, as they are not forgotten in the new foreign exchange regime.
Speaking at an interactive session between BDCs and CBN, Governor of CBN, Godwin Emefiele, told forex operators at the session that all hope is not lost, because the apex bank was working round the clock to accommodate the stakeholder in order to achieve stability of the foreign exchange market and the exchange rate.
Emefiele, who was represented by Deputy Director, Financial Policy and Regulatory Department, Mr. Anthony O. Ikem, noted that retail forex operators under the aegis of Association of Bureau De Change Operator of Nigeria (ABCON) need to exercise some patience and corporate with the CBN, in order for both the operators and the CBN achieve better and improved forex market.
According to the CBN boss, efforts will be make to see how BDC can be carry along, as CBN understand the importance of BDCs in the country, because the BDCs are still relevant in the new FX policy but need to corporate and partner with the CBN.
“CBN will look into the recommendation from ABCON to see how CBN can work with the BDCs to improve the forex market in the country”, he said.
Earlier in his speech, the President, Association of Bureau De Change Operator of Nigeria (ABCON), Alhaji Aminu Gwadebe, pointed out that what CBN needed was that the BDCs should understand that it is no longer business as usual.
While assuring its members on their integration into the new forex market, he said, “It can be three days, it can be one week but very-very soon, the BDCs will be involved in the new forex regime.”
Gwadebe, however, urged the CBN to be more sensitive to the BDC industry and considerate in its policy formulation to allow the industry plays bits role, adding that the present situation in the foreign exchange market is terrible
skewed against BDC and the result is the huge gap between the interbank and parallel market rates, which provides opportunity or sharp practices.
ABCON boss, noted that there should be compulsory dollar inflows by the Foreign Exchange Primary Dealers (FXPDs) from their account overseas as they have over $4 billion idle funds abroad instead of only being sharing partner of the nation’s foreign reserves.
In his recommendation, Gwadebe urged the apex lender to make retail foreign exchange transactions the exclusive preserve of BDCs, adding that CBN should grant Approved-in-Principle or Certificate of No Objection to the ABCON roadmap.
He also advised the CBN to develop a framework for regular training of BDC operators, and ensures concerted efforts on diversification, while there is a need for infrastructural and institutional development.
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