Manufacturers in the country have called on the Central Bank of Nigeria to put in place a monitoring mechanism in place to check the activities of BDC, in order to curtail further depreciation of the naira.
This advice is coming on the heels of the proposed plan by the apex bank to resume sale of dollar proceeds of international money transfer (IMT) to bureau de change (BDC) operators this week.
One of the manufacturers who spoke with National Daily, the Chairman, Toiletries and Cosmetics group of the Manufacturers Association of Nigeria (T&C Group of MAN), Mr. Ikpong Umoh, said he didn’t like the idea of CBN selling forex to BDC operators, rather, he advised the monetary authority to fund businesses that will add value to the economy.
“The CBN should tread with caution to protect the naira, because operators of BDC are among those bastardizing our local currency. They are hawking dollar in such a manner that depreciates the naira so much. For instance, they can get forex from the official window of the apex bank at 306, only to sell at over 490, at a very high rate.”
“The CBN should fund local manufacturers who import raw into the country, to add value to the economy in job creation, instead of BDC operators. The people BDC are funding now are traders who engage in buying and selling of imported goods, without adding any value to the economy. Some of these traders import goods that can be made locally from China and other countries, to the detriment of local manufacturers in Nigeria.”
Responding to question on how BDC can get forex without the support of the apex bank, he explained, “There are different sources through which dollar comes into the country, so BDC can source from autonomous market and from people coming into the country. This is importation to prevent further depreciation of the local currency, which has greatly lost it value already. The CBN’s monetary policies in 2017 should promote industrial development through manufacturing and not importation”.