He added that while the dollar sale from CBN had helped in enhancing supply, BDCs are empowered to source FX from other sources and also to provide various services to members of the public.
“BDCs are licensed to provide retail FX services, including buying from the public and also selling to end-users for allowable transactions namely Personal Travel Allowance (PTA), Business Travel Allowance (BTA), payment of medical and school fees.
“While the CBN has stopped dollar sale to BDCs, it has not canceled their operating licenses, or banned them from providing FX services to members of the public.
“At ABCON, we urge our members to see the CBN pronouncement has a wake up call and opportunity to widen their customer base and deepen their business,” he said.
Gwadabe who said ABCON has always worked with the CBN to ensure proper working of the FX market, expressed confidence that the association would engage with the apex bank to address and resolve all the issues that led to the recent action, including identification and sanctioning of erring BDCs where necessary.
“In addition to this, and in view of the fact that BDCs have been very effective in ensuring stable exchange rate, ABCON will work with relevant stakeholders including law enforcement agencies to develop a National BDC Policy with the aim of enhancing the contribution of the BDC subsector to the nation’s economy,” he said.
“To this end, ABCON has called for a zonal nationwide meeting of members to discuss the action of the CBN and obtain contribution for the National BDC Policy.”
Meanwhile, the CBN has commenced the process of refunding licensing fees and capital deposits to promoters of bureau de change, whose registrations were being processed before Tuesday’s announcement.
In a circular, yesterday, the apex bank said it “will commence the immediate refund of capital deposits and licensing fees (where applicable) to promoters who have pending bureau de change (BDC) licence applications with the CBN”.
The bank called on affected parties to file requests for the refund through the Director of Financial Policy and Regulation Department.
