The Association of Bureaux De Change Operators of Nigeria (ABCON) has implored the Central Bank of Nigeria (CBN) to de-risk Bureaux De Change (BDCs) operations so as to allow operators gain access to foreign exchange from the autonomous market in 2022 and beyond.
According to a statement released during the weekend, the ABCON President, Alhaji (Dr) Aminu Gwadabe, stated that since the Monetary Policy Committee (MPC) meeting held in July 2021, where the CBN suspended weekly dollar interventions to BDCs, the BDC sector has been fading out.
He said that while BDCs are licensed to offer retail forex sales, across the counter forex transactions, they equally contribute to Nigeria’s economic development.
He added that the BDCs are ensuring order and confidence in the forex market, providing data for monetary policy, channels for CBN intervention in the retail forex market and creation of over 15,000 jobs, among others.
Gwadabe further noted that over N1 trillion annual transaction volume by the BDCs sector is under threat while huge capital investment in the sector is becoming redundant, being gradually eroded and winding up.
ABCON understands the challenges faced by the central bank due to the declining foreign reserves, oil output and oil theft, COVID-19 induced economic pains, fiscal policy challenges, debt burden and election spending, which are making it difficult for the CBN to sustain weekly dollar interventions to BDCs, Gwadabe added.
Gwadabe remarked further that the BDCs should be allowed to access dollars or diaspora remittances through the autonomous forex windows like allowing operators to receive IMTOs proceeds, carrying out online dollar operations and Point of Sale (PoS) agency, among others.
He, therefore, advised that the CBN should de-risk the BDCs operations to be able to receive diaspora remittances through the International Money Supply Operators (IMTOs) and deepen foreign capital flows to the economy just like the apex bank de-risked the agricultural sector, making it easier for agriculturalists to access cheaper loans at single-digit from banks.
