BDCs to Capture Diaspora Remittances After Full Integration Into I&E Window
- ABCON assured that the Nigerian economy will start to capture the diaspora remittances after full integration into the I&E window
- The development follows an earlier report that the CBN restricts BDCs on the official window to some extent
- It is expected that the presence of the BDCs on the window will help to reduce volatility
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The Association of Bureau De Change Operators of Nigeria (ABCON) has guaranteed that once the Central Bank of Nigeria (CBN) fully implements the integration of BDCs into the Investors and Exporters (I&E) window, the Nigerian economy will start to see and capture the diaspora remittances that are currently diverted to different jurisdictions.
This information was provided by Aminu Gwadebe, the president of ABCON, during a conversation on Wednesday, August 23, 2023.
Source: UGC
This is coming after report that ABCON asked the Central Bank of Nigeria to sell forex to BDC operators to improve dollar liquidity in the country.
According to earlier report by Legit.ng, the CBN restricted Bureau de Change (BDC) to a certain rate against the official window when buying and selling forex to customers.
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The need for democratise and decentralise process
According to Gwadebe, in a Nairametrics report, the BDC operators want to access autonomous windows of banks and e-money products as agents of International Money Transfer Operators (IMTOs) in line with democratising and decentralising the operational processes.
We believe when fully implemented, the apex bank and the economy will begin to see and capture the inflows that are currently undertaken as over-the-counter transactions in different jurisdictions with different regulations.
We seek for democratization and decentralization of the operational mechanisms by allowing the BDCs as agencies of IMTSOS, access autonomous windows of banks and E-money products.
Adding that ABCON, as the custodian of regulations, recommends its members to conform to the fullest extent possible with laws and regulations, he claimed that the CBN is doing a lot of training and sensitization for house cleaning.
The ABCON CEO emphasised that additional clarity about BDCs' responsibilities during the I&E window will contribute to eliminating or significantly reducing volatility and ensuring stability.
CBN reacts to reports of withdrawing 2,698 BDCs licenses as naira value drops again at official, black market
Legit.ng earlier reported that the Central Bank of Nigeria (CBN) has refuted claims that it has suspended 2,698 Bureau De Changes' (BDCs') ability to operate.
The CBN reportedly cut the number of BDCs approved from 5,689 to 2,991 in different media sources.
The head of corporate communications for CBN, Isa Abdulmumin, acknowledged that the 5,687 BDCs still exist in an exclusive phone interview with Legit.ng.
Read more to learn about approved Bureau de Change operators in Nigeria.
Source: Legit.ng
