BDC Operators Want Forex Sales Review


BY CHINYERE OBIORA, LAGOS – Disturbed by dire financial straits in the system, Bureaux De Change Operators on Tuesday urged the Central Bank of Nigeria (CBN) to review upward foreign exchange sales margins by N10 per dollar to mitigate their current losses.
Acting President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe said the present sales margins of N2 is still small  to cover losses being incurred in BDCs’ segment of the forex market
Gwadabe, who addressed financial journalists after the ABCON’s emergency meeting said, “Currently, the apex bank sales foreign exchange to the BDCs at the rate of N360 to a dollar while operators are expected to sell at N362.00 per dollar to forex end users.”  
He said “We have told the regulators that it is small, in other climes there are margins that are up to 10 per cent. The margin of N2 we feel is still small so let the CBN review that margin to at least N10 per dollar.”
The ABCON boss however urged operators to always abide by the CBN’s forex rules and regulations while shunning speculation and all forms of malpractices. “You need to keep your eyes widely open to ensure that you do not breach any regulatory guidelines that will expose your business to CBN’s sanctions and penalties,” he said 
Warning the Association’s members against engaging in forex speculation, Alhaji Gwadabe said it was important to “follow CBN regulatory guidelines because whatever BDCs are doing today, the entire world is watching the market.”
He said that initially, the forex rate was N520 to a dollar, noting that with the apex bank’s intervention, rates have dropped and will continue to achieve better results with continuous funding of BDCs through increased dollar allocations.
He expressed is need for CBN to sustain supply towards continuous strengthening of the Naira value against the dollar, adding the BDC operators are ready to help CBN narrow the forex gap between official and parallel market.
The ABCON said the wide gap in both segments of the market will weaken the local currency and make the nation’s economy to suffer if it continues to go up, even as he called on BDC members to support CBN and its intervention policies.
“Let us remain ready to partner with the CBN to ensure there is rate convergence. Let us work together to make the market transparent, accountable and secure for the economy, investors and Nigerians in Diaspora so that more dollars will be attracted into the economy to strengthen the local currency,” Alhaji Gwadabe said
Noting that forex stability will impact positively on the economy, Gwadabe urged operators to do everything possible to push the rates down, adding that such effort would enable ABCON to ask CBN to increase forex allocation to BDCs.  

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