TheNewsGuru

Tag: BDC

  • CBN injects $190m into FOREX market, opens up market

    CBN injects $190m into FOREX market, opens up market

    Relentless to achieve convergence of rates between the interbank and Bureau de Change segments of the foreign exchange market (FOREX), the Central Bank of Nigeria (CBN) has injected another 190 million dollars into the market.

    The acting Director, Corporate Communications, CBN, Mr Isaac Okorafor, in a statement on Monday in Abuja, said 100 million dollars was offered as wholesale interventions and 50 million dollars was allocated to the Small and Medium Enterprises (SMEs) FOREX window.

    He said that 40 million dollars was also allocated to accommodate customers requiring FOREX for business, Personal Travel Allowances, tuition and medical fees.

    Okorafor said the Naira had made tremendous gain against the dollar in recent times.

    He said FOREX rates at both the inter-bank and BDC segments had almost converged, prompting even greater optimism that the value of the Naira would continue to spike.

    Okorafor observed that by ensuring transparency in the market as well as fairness to end-users, the CBN had further exposed speculators and checkmated them.

    He, therefore, urged all dealers, particularly licensed BDCs, to continue to play by the rule, adding that the CBN would not hesitate to wield the big stick against any erring bank or dealer.

    Okorafor said that the CBN had also released new guidelines to further develop the foreign exchange market and improve its structure.

    “The new circular, among other provisions, allows authorised dealers to sell their excess foreign currency to other authorised dealers without seeking prior approval from the CBN,” he said.

    Meanwhile the Naira continues to maintain its strong stand against major currencies around the globe, exchanging for N364 for one dollar in the BDC segment of the market on Monday.

     

  • BDCs vindicated by discovery of money in Lagos, says Gwadabe

    BDCs vindicated by discovery of money in Lagos, says Gwadabe

    Alhaji Aminu Gwadabe, the President, Association of Bureau De Change Operators of Nigeria (ABCON) said that the discovery of huge sums of money in Lagos has vindicated its members.

    Speaking with newsmen in Lagos, Gwadabe said that ABCON was saddened by the development, but added that the real enemies of the Naira were gradually being exposed.

    TheNewsGuru.com reports that the Economic and Financial Crimes Commission (EFCC) had on Wednesday discovered about 43 million dollars, N23 million and 27 thousand Pounds sterling from a building at Ikoyi, Lagos.

    According to him, every well meaning Nigerian has seen that the issue of depreciation of the naira was beyond the BDCs.

    “Only God knows the quantum of money that is outside the banking sector,’’ he said.

    He said that it was unacceptable for an individual or group of individuals to store such volume of money at home.

    Gwadebe said hoarding and currency speculation was no longer profitable, urging members of the public to desist from such acts in the overall interest of the economy. Gwadabe urged the Central Bank of Nigeria (CBN) to critically look into developments in the banks, where unutilised foreign exchange was returned to it in spite of long queues of persons waiting to buy them.

    “I hear that 100 million dollars was given to the banks recently and only 45 million was used.

    “The CBN should look into the position of the banks and see how the unused foreign exchange can be earmarked for the BDCs,’’ he said.

    He expressed optimism that with the spate of investigations and discoveries by security agents, the Naira was on its way to recover.

     

     

    NAN

  • BDC operators advocate professionalism in forex market

    BDC operators advocate professionalism in forex market

    The Association of Bureaux De Change Operators of Nigeria (ABCON) says it is committed to deepening professionalism among its members to gain investors’ confidence.

    Alhaji Aminu Gwadabe, ABCON’s President, said this at the South-West zonal meeting of the association on Thursday in Lagos.

    He said that the body believed that professionalism engendered foreign investors’ confidence in the Nigerian foreign exchange market.

    Gwadabe called on Bureaux De Change (BDCs) operators to distinguish themselves from parallel market operators by rendering efficient services and complying with regulations.

    He said that while the pressure on the naira was due to liquidity problems and confidence, professionalism on the part of BDCs would help boost foreign investors’ confidence in the nation’s foreign exchange market.

    “ABCON is committed to boosting foreign investors’ confidence as this will help attract the much needed liquidity into the market and reduce pressure on the naira exchange rate.

    “You have to distinguish yourselves from parallel market.

    “We are the ones licensed to operate the business, but we must prove this by distinguishing ourselves through the way we serve our customers.

    “Before now, there were criticisms about BDCs but now we are the new bride of the regulators,’’ Gwadabe said.

    The president also urged members of the association to comply with the necessary requirements in their businesses, to ensure that they sustain the renewed regulatory interest and confidence in BDCs.

    “The Central Bank of Nigeria is willing to expand our scope of business, but this is conditioned on our willingness to increase our level of professionalism.’’

    Gwadabe advised BDCs not to limit their services to foreign exchange needs for Personal Travel Allowance (PTA).

    “Why is everybody just doing PTA, when you can do mortgage, school fees and medical expenses?

    “You can do mortgage, medical and school fees on cash basis, provided you don’t exceed $5,000, and you ensure all the necessary documentations are provided.’’

    Gwadabe assured members that the association had started addressing the challenges experienced by BDCs in verifying Biometric Verification Numbers (BVNs) and the international passports of prospective customers.

    He added that ABCON had started discussions with the management of Nigeria Interbank Settlement System (NIBSS), on the need to provide dedicated channel for BDCs to verify BVNs and international passports.

    He, however, advised BDCs to be patient and continue to use the available channel to verify BVNs and the international passports of customers.

    He also advised BDCs to deal with people they were familiar with to ensure compliance with the Know Your Customer (KYC) requirement of the Central Bank of Nigeria (CBN).

    Gwadabe also said that the association had set up a surveillance committee to monitor the activities in the BDC sector.

    He called on members of the association to help facilitate the work of the committee by providing it with information on any observed malpractice, by any operator.