ASSOCIATION of Bureaux De Change Operators of Nigeria (ABCON) have called on the Central Bank of Nigeria (CBN) to increase the margin allowed for BDCs on foreign exchange transactions.
Making this appeal last week at a webinar organised by the association, ABCON President, Aminu Gwadabe, said the N2 margin per dollar presently allowed by the apex bank is grossly inadequate in view of the huge operating cost of BDCs.
Titled, ‘Resumption of Foreign Currency Sales to BDCS; COVID-19 challenges, Compliance and Way forward’, the webinar was organised to sensitise BDC operators on the processes put in place by the CBN and ABCON to ensure seamless dollar purchase by members of the public through BDCs.
Citing the example of other countries where BDCs enjoy up to six per cent margin per dollar, Gwadabe stressed that even the N2 per dollar allowed by the CBN is not up to the three per cent margin previously allowed by the apex bank at the commencement dollar sale scheme”.
He said: “The challenge that we are facing is the smaller margin. Right now, the parallel market is doing about N430 and our pegged rate is N386 to the dollar. So, we still see a gap between the advised exchange rate of N386 by the CBN and what is obtainable presently in the market. We are asking the CBN to please look at this and review it for us.”
Gwadabe also urged the CBN to allow for the use of virtual documentation which he said would help in curbing the spread of the Covid-19 pandemic.”
Gwadabe stated that in addition to low margin, other challenges confronting BDCs include limited scope of operation, rigorous documentation, and the penalties levied on erring operators.
Stressing that the ABCON have always supported sanctioning of erring members, Gwadabe said there is need for the apex bank to review some of the penalties given the severe impact of COVID-19 on the operations of BDCs.
While ensuring the CBN of the continued cooperation of ABCON in ensuring stable exchange rate and compliance with regulatory requirements by BDCs, Gwadabe commended the apex bank for the resumption of dollar sales to BDCs.
On the other hand, the ABCON President charged BDC operators to reciprocate the gesture of the CBN by ensuring strict compliance with all regulatory requirements. He charged BDC operators to avoid any transaction not within the scope allowed by the apex bank so as to avoid sanctions.
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
TOUGH POLICIES: IMF, World Bank Take Over Nigeria’s Economy •More Pains Ahead For Nigerians
ALTHOUGH this seems a difficult period for Nigerians, Sunday Tribune investigations have, however, revealed that it could actually be a signal to the beginning of more unbearable pains in the form of economic policies as the Federal Government continues to implement the stringent conditions of its international creditors…
What I See Around The Villa — Primate Ayodele
In this interview by KEHINDE OYETIMI, founder of Inri Evangelical Spiritual Church, Lagos, Primate Ayodele speaks on both global and local issues…
High Cost Of Fuel, Electricity Will Ruin Our Lives — Market Leaders, Business Owners Lament
CONDEMNATION of the hike in petroleum products and electricity went notches higher at the weekend as more Nigerians flayed the decision of the Federal Government to take such a decision not minding the fatal blow dealt the economy by the coronavirus pandemic…
No Govt Has Raped Nigeria Like Buhari’s — Labour Leaders
WITH last week’s increase in the pump price of fuel, the organised labour has warned President Muhammadu Buhari against pushing Nigerians to the wall, saying no government has raped the country like the current administration. The labour leaders, in separate interviews with Sunday Tribune, said Buhari has lost touch…
P&ID $10B Scandal: How Govt Officials Frustrated Nigeria’s Case — Shasore
FORMER Lagos State Attorney-General (AG) and Commissioner for Justice, Olasupo Shasore, a Senior Advocate of Nigeria, at the weekend opened up on the salacious scandal trailing the controversial contract crisis between Nigeria and an offshore Shell company, Process and Industrial Development Limited…
What Caused My Rift With Oshiomhole — Obaseki
THE Edo State governor and candidate of the Peoples Democratic Party (PDP), Mr. Godwin Obaseki, has said that one of the reasons his predecessor, Adams Oshiomhole is against his re-election bid is his reversal of the sale of Edaiken Market, which Oshiomhole sold to his friends…