BDCs join force with CBN to defend Naira

As the pressure on the foreign exchange market persists, Nigeria’s licensed retail currency traders, known as Bureau De Change (BDC) operators are joining forces with the Central Bank of Nigeria (CBN) to defend the naira.

Part of the BDCs contribution towards defending the naira is seen in their commitment to regulatory compliance and constantly supporting the CBN to achieve a stable exchange rate and attract forex into the economy.

The over 5,000 operators across the country on Thursday declared operational war against foreign exchange speculators and black market dealers distorting the naira exchange rate against the dollar and other global currencies.

Nigeria’s currency on Thursday steadied at N484 and N480 at the black market and BDC segment of the foreign exchange market.

The opened at the Investors and Exporters (I&E) forex window on Thursday with Naira gaining 0.17 percent to N409.66k as against N410.35k opened on Wednesday, data from the FMDQ indicated.

During a sensitisation programme held virtually across Lagos, Abuja, Kano, Onitsha, Benin, among others, and attended by over 5,000 BDCS, Aminu Gwadabe, president of the association of Bureaux De Change Operators of Nigeria (ABCON), said the BDCS will not allow forex speculators and street hawkers to take over BDC business in Nigeria through their illegal practices.

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The sensitisation programme will upscale BDCS’ compliance with the Anti- Money Laundering and Combating the Financing of Terrorism (AML/CFT).

“Please, now is the time to support the CBN to achieve stable exchange rate,” Gwadabe said, while encouraging them to constantly comply with CBN’S regulations on a rendition of returns and corporate governance practices because aside helping in stabilising the naira, the CBN examiners can visit your offices and defaulting members will be sanctioned.

He informed the members that they can be spot-checked by the CBN examiners at any time and should therefore put in necessary measures to align with the regulatory policies.

“Be vigilant in your operations because you can be spot-checked by the CBN examiners at any time. All BDCs should appoint compliance officers and data protection officers as directed by the CBN which is also in-line with the global best practices. Also, avoid sending your returns late, selling dollar above CBN approved rate,” he advised.

Godwin Emefiele, governor of the CBN had assured that the CBN would continue to work assiduously to resolve the few challenges that were remaining in FX market.

Gwadabe, who spoke on the theme: “ABCON Sensitisation Against Volatility in the Exchange Rate”, said by following set rules, the operators will set a good example in their operational modalities and make forex buyers lose confidence in black market dealers.