Kwara Bureau De Change operators appeal to CBN for reversal of forex policy

Date: 2016-01-18

Bureau De Change operators in Kwara State have called on the Central Bank of Nigeria to reverse its ban on forex sales to BDCs, which is taking on their businesses.

The CBN had stopped, with immediate effect, the sale of foreign exchange, forex, to Bureau de Change, BDCs, as part of measures to reduce the pressure on the nation's foreign reserves.

The Governor of the CBN, Mr. Godwin Emefiele, who announced the policy change in Abuja, said BDCs are now to source forex from the autonomous market. Before now, the CBN was selling $60,000 to each BDC weekly, translating to $167 million weekly and about $8.6 billion yearly. The amount was reduced to $10,000 per BDC, translating into $28.4 million depletion of the foreign reserve per week and $1.476 billion per annum.

Speaking with Pilot Business on Friday, the BDC operators pointed out that the policy has not achieved its objective as naira has continued to fall against the dollar.

"The only challenge we are facing is that since CBN stopped selling the dollars to BDCs, the demand has risen astronomically against supply. "Our customers are coming to do transactions but the dollar is not available and this has chased many operators out of business.

Similarly, another operator, Alhaji Samaila Musa said " we want the apex bank to reverse the policy by supplying BDCs dollars as the only way for the dollar to fall against the naira. "Even if it is N50,000 that CBN can give us weekly, this will be appreciated. This is because the dollars can't fall when the demand is high."

Another operator, Alhaji Tijani Maina stressed that "CBN has done its worst. We're all running, chasing an elusive dollar. We have travelled that road before and know it will only worsen the bad situation we are facing today,"

"The CBN cannot justify its actions because we control less than five per cent of the forex market value. Whatever imperfection is in the market, it is a wrong approach for the CBN to say it will no longer fund BDCs."

Continuing, he said the BDC is a market driven by demand and supply, adding that by reducing the dollar supply to the market, the naira will fall against the dollar within the next few months, unless the policy is reversed.

According to Olalekan Mohammed operating at Emir's market 'Oja-Oba,' Ilorin, the CBN will learn the bitter truth about the roles of BDCs in the economy if the policy is not reversed.

He lamented that under Emefiele, the regulator has been treating BDC operators as if they add no value to the economy. He said: "Let's wait and see how the market will allocate forex without BDCs. Let's see if banks that have severally been blamed for round-tripping will do it more effectively than BDCs.

On his part, Alhaji Hassan Mustapha warned that the policy could lead to liquidation of majority of the BDC operators, job loss and more volatility in the forex market. He said "I am sure the policy shift will be temporary and they will come back to their senses unless there is a better strategy to sell to small forex users".

Source

 

Cloud Tag: What's trending

Click on a word/phrase to read more about it.

Awwal Jawondo     Agboola Babatunde     Micheal Imoudu     Oke-Odo     Emmanuel Olatunji Adesoye     IFK     Kolawole Akande     Ilorin Durbar     Niyi Ogundiran     Abdulrasheed Akogun     CCEPE     Isiaka Gold     Temitope Ogunbanke     Kwara Central     Elerinjare     Samuel Adedoyin     Segun Abifarin     Pius Abioje     Talaka Parapo     Alikinla     Bankole Omishore     High Court     AGF Abdulrazaq     Damilola Yusuf Adelodun     Tunji Moronfoye     International Public Sector Accounting Standards     Yoruba     Countryside Emerging Leaders Fellowship     Kwara North     John Olobayo     Mohammed Danjuma     Gobirawa     Yusuf Amuda Aluko     Abioye Bello     Yusuf Abdulwahab     Rihanat Ajia     Bayo Ajia     Kwara State Branch Of The National Library     Grillo     AbdulRazaq Jiddah     Raliat Islamic Foundation     Cornelius Adebayo     Fatimoh Lawal     MATTA Girls Foundation     Funmi Salau     Adedayo Yusuf Abdulkareem     Simeon Ajibola     Volunteers Of Ilorin Community And The Emirate     Kale Belgore     IQRA College     Bayer Nigeria Limited     Senior Ibrahim Suleiman     Ayekale     Mohammed Katsina Ahmed     Bola Shagaya     All Confederation Of Principals Of Secondary Schools     Folajimi Aleshinloye     Segun Ogunsola     Special Agro-industrial Processing Zone     Suleiman Yahya Alapansapa     Basic Education Certificate Examination     Yahaya Abdulkareem     Azeez Bello     Sarakite     Nnazua     Sheriff Shagaya     Musa Alhassan Buge     Saka Asiat Ayinke     Abdulkadir Orire     Gbadeyan Gbadura Yomi     Kayode Ishola     Www.Kwarareports.com     Lateef Fagbemi     Temi Kolawole     Isiaka Danmeromu     Abubakar Abdulraheem     Kwara State Fire Service    

Cloud Tag: What's trending

Click on a word/phrase to read more about it.

Abdullahi Atanda     Ghali Muhammed     Clara Nwachukwu     Kayode Ogunlowo     Funmilayo Mohammed     Muhammad Ghali Alaaya     Yakubu Dogara     Kwara Politics     Yusuf Arowosaye     Amuda Aluko     Baba Idris     VADA     Dagbalodo     Jimoh Akani     Hakeem Idris     Saka Onimago     Cornelius Adebayo     Kola Adesina     Yashikira     AbdulRazaq Jiddah     Bayo Ojo     New Model Police Station     IYA YUSUF     Yusuf Lanre Badmus     Majlis For Sadaqah, Zakat And Waqf     Road Transport Employers Association Of Nigeria     Sa\'adu Salahu     Tsado Manman     Abdulkadir Jimoh     Lasiele Alabi Yahaya     S.O. Opowoye     Ibrahim Agboola Gambari     Ogbondoroko     Abikan     Forgo Battery Company Limited     Dauda Adesola     Olupako     Folorunsho Alao     Muhammed Akanbi     Ibrahim Abdulkadir Abikan     Christopher Odetunde     Abdulrahman Onikijipa     Oba-Solagberu     Oke-Ode     Sa\'adu Salau     Bankole Omishore     Kemi Adeosun     Riskat Opakunle     Okin Group     Abioye Bello     Ramadhan     Kolawole Akande     Bareke     Rafiu Ajakaye     Olubukola Kifayat Adedeji     Opobiyi     Suleiman Rotimi Iliasu     AbdulGafar Tosho     Shuaib Jawondo     Oke-Kura     Radio SBS     Nigeria Foundation For Artificial Intelligence     International Public Sector Accounting Standards     National Democratic Congress     Ibrahim Taiwo     ER-KANG Mining     Kwara State Television (KWTV)     Tinubu Legacy Forum     Ilesha Gwanara Road     IsDB     CUTI     SGBN     Jebba     Student Learning Support Helpline     Saliu Tunde Bello     Quareeb Islamic Association     Emir Of Kano