The Association of Bureau De Change Operators of Nigeria (ABCON), says further clarifications on BDCs’ roles in the I&E window will help eliminate or significantly reduce the volatility and ensure stability.
This was made known by the ABCON President, Aminu Gwadebe, during a chat on Wednesday, August 23, 2023, where he expressed gratitude to the management of the Central Bank of Nigeria for the new policy.
He assured that the Nigerian economy will begin to see and capture the diaspora remittances that are currently diverted to different jurisdictions when the CBN starts full implementation of the integration of BDCs into the Investors and Exporters (I&E) window.
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Gwadebe said the BDC operators are seeking the democratization and decentralization of the operational mechanisms by allowing them as agents of International Money Transfer Operators (IMTOs), to access autonomous windows of banks and e-money products.
Gwadebe in his statement said, “We sincerely appreciate the management of CBN for setting the pace with the integration of our members as a third leg of the I&E window.
“We believe when fully implemented, the apex bank and the economy will begin to see and capture the inflows that are currently undertaken as over-the-counter transactions in different jurisdictions with different regulations.
“We seek for democratization and decentralization of the operational mechanisms by allowing the BDCs as agencies of IMTSOS, access autonomous windows of banks and E-money products.
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“The CBN is doing a lot of training and sensitization for house cleaning with the end of 31st August deadline. ABCON as a custodian of regulation advises our members to comply with the extensive rules and regulations guiding their operations.
“We have however noticed volatility and spikes as a result of uncertainties in the market. Further clarifications on BDCs roles in the I&E window will help to eliminate or reduce significantly the volatility and usher in stability.’’
The CBN had on August 17, in a major policy shift, bowed to pressure from BDC operators as they unveiled a series of operational changes for the Bureau De Change segment in a bid to enhance the efficiency and transparency of the Nigerian Foreign Exchange Market.
Under the new framework which reintroduced the BDCs in the market, the spread on buying and selling by BDC operators is set to fall within a permissible range of -2.5% to +2.5% of the Nigerian Foreign Exchange market window’s weighted average rate from the previous day.