Forex liquidity to ease as FBN, Travelex begin sale to BDCs

By Odunewu Segun

With the approval from the Central Bank of Nigeria for First Bank and Travelex to begin sale of foreign exchange to Bureau De Change operators in the North, forex liquidity is expected ease.

National Daily gathered that since the appointment of First Bank and Travelex by the CBN to sell the proceeds of Diaspora remittances to the BDCs, the naira has continued to appreciate in all the segments of the market.

There have been agitations by stakeholders in the forex market on the perceived delay in the coming on board of Travelex to Abuja and its environs. The present approach is expected to improve liquidity in the forex distribution chain.

The President, Association of Bureau De Change Operators of Nigeria, Alhaji Aminu Gwadabe, revealed that the CBN brokered a meeting between Travelex and ABCON which led to the commencement of the sale of forex in Abuja, Kano and by extension, Port Harcourt.

He said that the BDCs in Abuja got $20,000 each from the sale of forex by First Bank on Tuesday, adding that Abuja and environs would also benefit from the sale, noting that the BDCs in Abuja and its environs were expected to begin documentation and biometric registration with Travelex on Thursday.

He expressed appreciation to Travelex for showing understanding, adding that ABCON’s earlier call for the appointment of another distributor was to ensure an easy and smooth distribution of forex.

Gwadabe explained that ABCON had continued to educate its members on the need to play by the rules of the regulator in ensuring that the naira recovered fully.

He assured the CBN that the automation of its operations was to ensure transparency in the forex distribution network and to frustrate any effort to slow the wheel of progress.

He said, “The naira is expected to appreciate further in Abuja and its environs as the CBN has appointed First Bank and Travelex to sell forex in that region. ABCON is grateful to the CBN, Travelex and First Bank for ensuring that the naira is rescued from the hands of its enemies.”