HOPE MOSES-ASHIKE
Bureau De Change (BDC) operators are asking the Central Bank of Nigeria (CBN) to grant them approval in principle for their proposed trading platform.
This they believe will give the Association Of Bureaux De Change Operators Of Nigeria (ABCON) and its technology partners the boost needed to kick-start the project.
The BDCs also appeal to the CBN to issue letter of Consent to their proposed training institute. This is going to be a boost to the current ABCON management commitment to capacity building of its members which is expected to boost competency in the sector.
The BDC sector is confronted with many challenges such as multiple exchange rate, abnormal bank charges, Value Added Tax (VAT) and Commission on Turnover (COT), parallel market operators and illegal International Money Transfer Operators (IMTOs), porous international boarders, complex documentation requirements and poor capacity/ skills of operators.
The operators decried that the BDC business has been badly affected by “uncompetitive rate as the CBN sells dollars to BDCs at higher rate compared to what it sells to commercial banks, yet both institutions target the same market segment and customers.
Speaking at the official launch of www.naijabdcs.com, Aminu Gwadabe, president, ABCON, said, “We want the apex bank to make BDC transactions Value Added Tax (VAT) and Commission on Turnover (COT) exempt, reduce BDCs licence renewal payments and also expand beyond scope of transactions.
The Naijabdcs.com is a live rate engine room created by the ABCON to promote transparency and price discovery in the foreign exchange (forex) market.
Gwadabe said the CBN approval reaffirmed the regulator’s commitment to a transparent and viable forex market where stakeholders’ interests are protected.
“Today, with globalisation and rising influence of technology, BDC operators under my leadership are committed to staying ahead of the competition by deploying time-tested technology to deliver effective services to their numerous customers. The portal is one of the numerous instruments that will be of great help and support for the BDCs in the journey sustain transparent transactions”, he said.
The new live rate engine will provide buying and selling rates across different cities and also average national rate for the country. All the CBN-approved BDCs will key into this revolution meant to transform the forex market, and keep speculators out of the market.
“In Nigeria, the challenges of poor economic growth must be confronted with strategic innovative thinking by providing sustainable solution as we are doing here today through the website launch. I will like to assure you all, that under my leadership, Naijabdcs.com will become a household name in financial news and business reporting”.
