Travelex, a global foreign exchange (forex) dealer, will today be disbursing $15,000 to each of the 3,000 registered Bureaux De Change (BDC) operators.
President, Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, who disclosed this Thursday, said with each of the 3,000 BDCs getting $15,000 each, there is hope that Naira will strengthen as $45 million will likely flow into the system today.
He praised the Central Bank of Nigeria (CBN) for authorising Travelex to take responsibility of disbursing huge dollar inflows from the Diaspora estimated at $21 billion annually to BDCs.
Gwadabe said the development, which was an improvement from the initially approved $10,000 weekly, would deepen dollar liquidity in the system and strengthen the naira against the dollar.
Gwadabe, said the experience and integrity of Travelex will be key in getting the dollars down to BDCs.
He urged all ABCON members and BDC operators, as a matter of urgency, to visit their Central Bank of Nigeria (CBN) branches in their respective zones to update or validate their en-cashers and signatories mandate card for Travelex biometric data capturing.
Gwadabe said the Travelex biometric data capturing would enable the BDCs access the International Money Transfer Operators (IMTOs)/Travelex dollars window starting soon.
He said remittances have direct positive and significant impact on consumption, investment, and demand in the country as it can be used to address short-run output shocks, and even long run growth. He said that remittances tend to be stable and to increase during periods of economic downturns and natural disasters.
He commended the CBN for reaffirming the country’s commitment to building an enabling environment and level-playing field for international money transfer services to Nigeria.
He said that by increasing the number of IMTOs from three to 14, the CBN under its Governor, Godwin Emefiele, would set the economy on the path of development in the medium- to long-term and also, restore integrity in the international money transfer business.
Gwadabe also commended the CBN’s efforts to strengthen the BDCs to meet the forex demand at the retail end of the market so that they can continue to enhance employment generation in the country.
The ABCON boss believes that despite the challenges facing the economy, the CBN and BDCs would continue to work together and find sustainable solutions that can help the country wriggle out of the ongoing forex crisis and achieve full economic recovery.
He pledged that ABCON under his leadership would continue to ensure that purchased funds are sold to end users and for eligible transactions only and shall render weekly returns on purchases from the banks to Trade and Exchange Department of the CBN. He further promised to ensure strict compliance to the provisions of the anti-money laundering laws observance of appropriate KYC principles in the handling of forex transactions.