The Central Bank of Nigeria (CBN) has made it mandatory for all the Bureau de Change (BDCs) operating in Nigeria to access Foreign Exchange market thrice a week.
A statement from the apex bank’s Acting Director, Corporate Communications, Isaac Okorafor, on Sunday indicated that the new directive would allow eligible travellers more access to foreign exchange and allow more liquidity to the market.
He stated: “All BDCs shall henceforth access forex from the CBN on Mondays, Wednesdays and Fridays.”It is compulsory that all BDCs access forex at least three times weekly.
“Any BDC that fails to access the forex window at least three times weekly shall have its licence reviewed by the CBN”, he added.
He also confirmed that the apex bank had authorised all commercial banks to buy and sell foreign exchange to travellers whether they have account in the banks or not.
Specifically, Okorafor stated that the banks were mandated to sell Forex once a customer or non-customer presents relevant, valid travel documents such as visa and travel ticket, assuring that all travellers shall be attended to immediately at the banks’ counters.
He warned that the bank would sanction any bank that contravened the latest directive.
The latest directive is coming after the CBN had last Wednesday disclosed that some banks were turning back customers that come to purchase Foreign Exchange for Personal and Business Travel as well as for pilgrimage.
The bank confirmed that it had supplied enough dollars to the Forex market required to meet genuine demands in the invisible segment and advised any customer denied Forex by any bank to report such refusal within 24 hours.
However, the President, Association of Bureau de Change Operators in Nigeria (ABCON), Alhaji Aminu Gwadabe, has described the directive as not desirable as has the potential of increasing the existing rate multiplicity in the market.
He explained: “Our immediate response is to call for an emergency meeting of the National Executive Council to put up our demand for clarifications. It is totally unfair to the BDC sub sector.
“Our recommendation is that the thrice market days for BDCs per week should be reviewed to twice with only the amount being reviewed up from 20,000 dollars to 30,000 dollars per market day.
“Also, both the banks and BDCs transaction rates should be merged to be the same. We also demand that BDCs should be allowed to return their unsold position to the CBN as is the practice by banks”, Gwadabe demanded.
According to him, the association will schedule a meeting with the CBN to get more details about the new directive, including clarifications on trading rates under the new directive and whether the same compulsion of thrice bidding per week by BDCs also apply to the banks or not.
Meanwhile, it was observed that the Naira depreciated against the dollar in the BDC segment of Forex market last Friday, exchanging at N367 to the dollar at the end of the day’s trading.
