Bureau De Change Operators Set To Meet With CBN Over Forex Sale Ban

The Association of Bureau de Change Operators in Nigeria (ABCON) is set to meet with the Governor of the Central Bank of Nigeria (CBN) within the next one week.

This was disclosed by operators who preferred to remain anonymous.

“The ban has been a rude shock to all operators, including the executive of ABCON, as none of us was expecting such directive at a time the Naira has not been fairing well.

“No doubt, the effect will be on our currency. Already, the exchange rate as at today is around N525/$1 or more depending on the area,” one of the respondents said.

ABCON keeps mum

All efforts to get the reaction of ABCON proved abortive, as its President, Dr Aminu Gwadabe, did not not pick calls or respond to text messages.

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The CBN had on Tuesday, banned the licensing of new BDC operators and processing of their application for forex across the country.

This disclosure was made by the CBN governor, Godwin Emefiele, while reading the communique after the 2-day Monetary Policy Committee (MPC) meeting on Tuesday, July 27, 2021.

According to Emefiele, CBN receives about 574 license applications from BDCs every month adding that there are currently 5,500 licensed BDC operators across the country.

He stated, “In particular, we have noted with disappointment and great concern that our Bureau De Change operators have abandoned the origin objective for their establishment, which was to serve retail end users who need $5,000 or less. Instead, they have become wholesale dealers, illegally in foreign exchange to the tune of millions of dollars per transaction.”

“Despite the fact, that Nigeria is the only country in the world today where a central bank sells dollars directly to the Bureau De Change operators, Nigeria Bureaus De Change segment have not reciprocated the bank’s gesture to help maintain price stability in that market.”