Bureau de change operators seek N10/$ margin to check sharp practices

The Association of Bureau De Change Operators of Nigeria (ABCON) has asked for a N10 margin per dollar from the Central Bank of Nigeria (CBN). Granted, ABCON said, it could check operators’ tendency for round tripping.

The group resolved to self-regulate to expose erring members, even as they have already set up investigative panel for pending cases. The Acting President of ABCON, Alhaji Aminu Gwadabe, said there was need for the margin as the current N2 margin and reduced foreign exchange offer is not sustaining their operations.

Meanwhile, the CBN has opened a special foreign exchange window for small and medium scale enterprises (SMEs) in continuation of the ongoing reforms in the market. The new window would enable SMEs to import eligible finished and semi-finished items not exceeding $20,000 for an enterprise in each three months.

ALSO SEE: Forex intervention: An exercise in futility as naira continues slide

This amount, the bank said, would be effected by telegraphic transfer subject to completion of Form ‘M’, supported with proforma invoice and the importer’s Bank Verification Number (BVN)”

On the other hand, all processing banks are to ensure that the importers submit relevant shipping documents not later than 60 days from the date of the transfer. CBN defines small and medium scale enterprises as enterprises that have asset base (excluding land) of between N5 million and N500 million and a labour force of between 11 and 300.

Continuing, Gwadabe said ABCON has a zero tolerance for non-compliance with regulatory requirement and unethical conduct amongst its members, adding that created the office of Compliance Officer at its National Secretariat and in all its zonal offices and also provided vehicles for the compliance officers to regularly visit BDCs under their jurisdictions.

The ABCON boss assured the CBN and other stakeholders that the BDC industry was duty-bound to operate within the ambit of the law and would continue to promote national interest and economic development.