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Tag: BDC operators

  • BDC operators back CBN’s directive on non-export domiciliary accounts

    BDC operators back CBN’s directive on non-export domiciliary accounts

    The Association of Bureau De Change Operators of Nigeria (ABCON) has commended the Central Bank of Nigeria (CBN) for its recent directive to cease the use of non-oil export domiciliary accounts for Naira loans.

    Its president, Dr Aminu Gwadabe, in a statement on Thursday in Lagos, said the stoppage would add to dollar liquidity in the market and also help in the accretion of the nation’s buffers.

    Gwadabe expressed surprise that some companies and manufacturers with huge billions of dollar balances in their non-oil export domiciliary accounts sourced foreign exchange needs in the official window and used the same for Naira loans.

    “We therefore advise for the review of the guidelines on holding currencies on non-oil export accounts to a maximum of 48 hours, to borrow from the South African policy on the operations of non-oil exports domiciliary account proceeds.

    “The CBN should also not make applicants of huge billions of dollars holding on their non-export oil proceeds Dom accounts eligible for fx request at both the NAFEM and NAFEX window.

    “In the same vein, we urge the CBN to upgrade its policies and circulars to legislation regarding the impending BDCs new reforms.

    “This is to give comfort and guarantees to would be investors in the transformation of the BDC industry’s sub sector and allowing only the existing stakeholders the grand father’s right for merger and acquisition to meet the expected reviewed financial requirements as suggested by ABCON.

    “We also want to pledge our continuing support to the CBN’s proactive and effective policies to address our volatility headwinds,” Gwadabe said.

    He said that being a self-regulatory body, ABCON and its members had resolved to continually engage all stakeholders and players in the retail end market.

    The engagement, he noted, was to deepen, liberalise, democratise and centralise the retail end segments of the market for price discovery, market efficiency, transparency, accretion of buffers and healthy balance of payments.

    “We express our profound gratitude to the management of the CBN for its reconsideration and reinstatement of our sub sector as third leg of the market to counter hoarding and speculation with faster results than expected.

    “The BDCs, though unfortunately perceived sometimes as crude but effective, will always remain the potent transmission mechanism tool of achieving the apex bank’s mandate of price stability and liquidity in the market.

    “We therefore urge the CBN to continue to drive and expand its thought mechanism to maintain the feat so far achieved in more than 15 years; as we have not only achieved the convergence of both rates, but market calmness and confidence of the public and foreign investors.

    “We also call for the separation of the ownership and operational structure of FMDQ,” Gwadabe added.

  • JUST IN: Naira falls to N522 after CBN bans forex sales to BDCs

    JUST IN: Naira falls to N522 after CBN bans forex sales to BDCs

    Naira fell marginally against the U.S dollar at the parallel market on Wednesday, after the Central Bank of Nigeria (CBN) announced that it has ended the sales of forex to Bureau De Change operators.

    Data recorded on abokiFX.com, a website that collates the parallel market rates in Lagos, showed that naira traded at N522.00 per $1 in the midday on Wednesday.

    However, at the importer & exporter (I&E) window, it traded moderately to at N411.50 per dollar.

    Recall the central bank lamented the parallel market had become a conduit for illicit forex flows and graft.

    The CBN said it will also call off the processing of applications for for BDC licences in the country.

    The CBN governor, Godwin Emefiele, who disclosed this during a live TV broadcasting while announcing that the bank has retained its benchmark policy rate, noted that weekly sales of foreign exchange by the CBN will henceforth go directly to commercial banks.

    “We are concerned that BDCs have allowed themselves to be used for graft,” Mr Emefiele said.

  • CBN Dollar Ban designed to further enrich commercial banks – BDC operators

    CBN Dollar Ban designed to further enrich commercial banks – BDC operators

    …apex bank failed to adequately monitor us
    …insist ban will further make Naira to slide beyond N600
    …alleged that most staff of CBN run BDCs
    By Emman Ovuakporie
    Some Bureau de Change, (BDC) operators on Tuesday said the Central Bank of Nigeria, (CBN) directive to ban their operations is primarily designed to further enrich commercial banks.
    TheNewsGuru.com, (TNG) reports the new development which has thrown operators into a panic mode did not actually come as a surprise because they had first hand information that CBN was going to strike them.
    Some of the operators who spoke to TNG under the condition of anonymity said though the CBN action did not come as a surprise “because some of us were aware.
    TNG recalls that on Tuesday afternoon, the regulator of the sector in Nigeria announced an end to weekly allocation and sale of foreign exchange to BDCs currently at $110 million per week.
    Commercial banks are to begin sales of forex to individuals with genuine need.
    One of the operators in Lagos mainland maintained that”what they do not know is that this action will further make the Naira slide beyond N600 in the next one month.
    “Nobody should blame us because the regulatory bank failed to adequately monitor as there are some bad eggs among us but that’s not the issue.
    “The real issue is that this ban is primarily designed to further enrich the commercial banks that are the biggest beneficiaries.
    “All they ought to do from the onset is to give a directive that hoarders of dollars will not get the weekly $10k they allocate and ensure some of us are actually denied.
    “If they had done this, the naira will definitely shore up but with this blanket ban, wait and see what will happen in the next month if the Naira will not further nose dive from where it is now.
    “Immediately the announcement was made the Naira hit N505 to the dollar and if care is not taken it will continue to slide.
    “The dollar is massively hoarded because in the last four years it has been gaining ground against the Naira so people hoard because the increase has remained constant.
    Another operator on the island too spoke in a similar vein heaping all the blames on the doorstep of CBN.
    He said”we’ll continue to hail former CBN governor, Sanusi Lamido because in his time he tried as much he could to stabilize the naira and that’s why every now and then when we had a parliament they summon him.
    ” Now that we know that the Nigerian parliament is an extension of Buhari’s cabinet nothing happens because there’s no check and balance any longer.
    “It’s a sad commentary if this trend continues in the next four years as this ban can never give the naira the succour to survive against the dollar.
    “Protocols in commercial banks will further frustrate Nigerians as our services may not be readily available except for a few of us who had first hand information and bought enough dollars to make a kill from this CBN directive.
    “Most CBN staff that we know run BDCs too to make ends meet and they enjoy same allocation except for those in category A who get as much as $1m.
  • Insecurity: FG set to arraign 400 suspected Boko Haram sponsors, BDC operators

    Insecurity: FG set to arraign 400 suspected Boko Haram sponsors, BDC operators

    The Federal Government has concluded plans to arraign about 400 alleged Boko Haram sponsors and financiers arrested in a nationwide sting operation last month.

    According to reports, some of the financiers, who included bureau de change operators, were arrested in Kano, Borno, Abuja, Lagos, Sokoto, Adamawa, Kaduna and Zamfara.

    According to a report by The Punch, the Federal Government is already preparing criminal charges bordering on terrorism against them as investigations continued into their nefarious activities.

    TheNewsGuru.com, TNG gathered that the arrest of the men was sequel to the recent jailing of six Nigerians in the United Arab Emirates (UAE) over allegations of terrorism financing.

    The media aide to Abubakar Malami, (Minister of Justice and Attorney General of the Federation), Dr Umar Gwandu who confirmed the development on Monday said the prosecution of the suspects “will commence as quickly as possible.”

    Meanwhile, findings indicated that the government was still probing the level of the businessmen’s connections to the terrorist group.

    Daily Trust had reported the arrest of the 400 suspected terror financiers by the Defence Intelligence Agency in collaboration with the Department of State Services, Nigerian Financial Intelligence Unit and the Central Bank of Nigeria.

    As part of the crackdown, billions of naira traced to businesses belonging to persons of interest were said to have been blocked in banks in series of “post no debit” letters sent out to banks by the CBN and NFIU.

    The apex bank had reportedly obtained court orders directing the freezing of dozens of accounts flagged for suspicious transactions.

     

  • CBN resumes forex sales to licensed BDC operators

    CBN resumes forex sales to licensed BDC operators

    The Central Bank of Nigeria (CBN) says it has commenced the sales of foreign exchange to the Bureau De Change (BDC) operators in the country.

    The CBN made this known in a circular signed by Dr Ozoemena Nnaji, Director Trade and Exchange Department, and addressed to authorised dealers and BDC operators on Thursday.

    The bank said the step was part of efforts to enhance accessibility to foreign exchange, particularly to travellers following the announcement of the limited resumption of international flights by Minister of Aviation.

    “The CBN hereby wishes to inform the general public that gradual sales of foreign exchange to licensed BDC operators will commence with effect from Sept. 7.

    “Consequently, purchase of foreign exchange by BDCs shall be on Mondays and Wednesdays in the first instance. The BDCs are to ensure that their accounts with the banks are duly funded with the equivalent naira proceeds on Fridays and Tuesdays accordingly.

    “Meanwhile, authorised dealers of Deposit Money Banks shall continue to sell foreign currency for travel related invisible transactions to customers and non-customers over the counter upon presentation of relevant travel documents, passport, air ticket and visa.

    “All authorised dealers and BDC operators are hereby advised to ensure strict compliance with the provision of the extant regulation on the disbursement of foreign exchange cash to travellers as any case of infraction will be appropriately sanctioned,” it stated.