- Despite the forex ban from the Central Bank of Nigeria, bureau de change operators intends to continue selling
- Bureau de change President, Aminu Gwadabe, says it is empowered to sell forex without the support of the financial regulator
- BDC operators intend to buy and sell dollars and other foreign exchange from individuals who patronise them
Three days after the Central Bank of Nigeria (CBN) banned sales of foreign exchange to bureau de change ventures and began process to cancel their license, BDC operators said they will continue to sell.
Aminu Gwadabe, President of Association of Bureaux De Change Operators of Nigeria (ABCON) said business will continue as usual as their guidelines enable them to sell without input from CBN.
Gwadabe said the apex bank only stopped sales of forex to them, and there was no directive of ban on their operation. He said BDCs are still licensed to sell different categories of dollars, euros and other forex.
What you need to know
The head of ABCON said they could source their FX from different channels without going through the financial regulator. According to Gwadabe, the ban shows that they shouldn't be too dependent on CBN.
He advised members of his association to expand their customer base as they can buy from individuals and sell in return to persons in need of their services.
Gwadabe said persons in need of forex for Personal Travel Allowance, Business Travel Allowance, medical expenses and school fees can approach BDC operators.
He said bureau de change involvement in forex sales helped the CBN to keep the foreign exchange rate stable, adding that they will discuss with the apex bank to resolve the situation.
Why CBN banned sales of forex to BDC operators?
CBN governor, Godwin Emefiele, had stated that forex will not be sold to the BDC operators due to their support of individuals involved in money laundering.
Emefiele had also stated that the BDC operators were in cohort with persons linked to corrupt activities, and they also offer forex in illegal channels.
He warned banks not to patronise or conduct business with them, stating that any lender caught will be punished severely. He also accused foreign firms and embassies of patronising illegal channels for forex.