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To save the naira, CBN should harness the BDCs – Gwadabe

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The President, Association of Bureaux de Change Operators of Nigeria, Alhaji Aminu Gwadabe, has said that in order to save the falling naira, the Central Bank of Nigeria should harness the BDCs.

Gwadabe disclosed this to Punch while speaking on how to solve the challenges of the falling value of the naira.

It would be recalled that recent policies of the CBN have affected the activities of the BDCs in the supply and distribution of forex in the country, hence Gwadabe’s consistent call for the apex bank to resume its working relationship with the BDCs.

What the BDC President is saying? 

Gwadabe said, “My sincere advice for the continuous loss of confidence in the value of the naira is to harness the BDCs’ potential as a vehicle to attract diaspora remittance and enhance supplies in the market.

“The remittance sources are huge, cheap and engine of growth in the economy.”

He requested the Central Bank of Nigeria to evaluate and consider BDCs as payout agents of International Money Transfer Service Operators in the remittance market, as stated in the Central Bank of Nigeria’s 2014 guideline for BDC reforms.

What you should know 

In July 2021, the CBN governor banned the supply of forex to BDC operators in the country, as a result of various infringements by the operators against Nigeria’s monetary policies.

The CBN Governor, Godwin Emefiele, also announced a halt on the licensing of new Bureau De Change (BDC) operators and further processing of BDC applications for forex across the country.

Nairametrics reported that CBN policy on the discontinuation of sales of forex to Bureau de Change Operators has consequently resulted in massive job cuts with a possible capitalisation fade out of N300 billion, according to a statement by the ABCON President.

Online foreign exchange rate website, abokiFX, which is currently under investigation by the Central Bank of Nigeria (CBN), disclosed it will temporarily suspend rates on all its platforms, to find clarity on the situation

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