Currency Watch

BDC operators want CBN’s consent to handle PTA, BTA businesses

by HOPE MOSES-ASHIKE

November 2, 2015 | 9:07 am
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money-nairaBureaux de Change (BDC) owners have called on the Central Bank of Nigeria (CBN) to make foreign exchange (FX) transactions relating to Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) exclusive businesses of BDCs. This call was made during the second BDC Owners Forum’s meeting held in Lagos last week.

Presently, banks and BDCs are allowed to sell FX for PTA and BTA. The BDC owners however said, “The CBN should disengage banks from the sales of PTA and BTA and make it an exclusive preserve for BDC operation.”

The BDC owners also called on the CBN to extend the deadline for use of BVN as criteria for FX transactions. Consequently, they mandated the leadership of the Association of Bureaux De Change Operators of Nigeria (ABCON) to write a position paper on the CBN’s re-introduction of the BVN.

“The position paper should seek for an extension in the deadline for compliance on the use of the BVN while emphasising the resolve of ABCON members to comply with the CBN circular and that we are indeed ready to partner with the regulatory authority on its monetary and fiscal policies,” they said.

The meeting however lamented the gap between the official and parallel market exchange rates and resolved to take measures to reduce the gap drastically. The gap between the two exchange rates as of Friday, October 30, was N20 with the interbank market rate at N197/$ and the parallel market rate at N227/$.

The measures include publication of the names, addresses and contact details of BDCs in national dailies and publication FX rates in national dailies. To complement this, the BDC owners also agreed to constitute a price control mechanism committee for the purpose of ensuring price and market stability.

In order to address the lingering crisis in ABCON, the umbrella body of BDCs resolved to form a reconciliation committee, with membership comprising BDC owners and CBN officials. The committee is to mediate on all matters of discord between aggrieved factions of the Association with the aim of achieving a peaceful reconciliation and resolution of all crises bedeviling the Association.


by HOPE MOSES-ASHIKE

November 2, 2015 | 9:07 am
12893  |   93   |   0  |   Start Conversation

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