Bureaux De Change Operators Complain Of CBN's NGN386/Dollar Directive

Bureaux de Change operators are complaining of the directive to sell forex at NGN386. The Central Bank of Nigeria (CBN) had given the instruction as it moves to start selling forex to Bureaux de Change operators after a long break.

The CBN plans to sell forex to Bureaux de Change operators at NGN384 but directed the operators to sell at NGN2 more. AllNews gathered that the NGN386 can't sustain their operations, as the profit margin is too small for the Bureaux de Change operators.

According to the President of the Association of Bureaux de Change Operators of Nigeria, Aminu Gwadabe, "The challenge that we are facing is the smaller margin. Right now, the parallel market is doing about N430 and our pegged rate is N386 to the dollar.

“So, we still see a gap between the advised exchange rate of N386 by the CBN and what is obtainable presently in the market.” Gwadabe said during a webinar held to deliberate the resumption of the forex sale by CBN to the parallel market. Note that the dollar has been falling this week.

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CBN Directive Goes Against Global Standard

According to Gwadabe, the CBN's directive reduced the profit margin of Bureaux de Change operators when compared to global Bureaux de Change operators who enjoy six percent profit margin in forex sales.

He said the NGN2 per dollar directive also infringes the three percent margin agreed at the commencement of the dollar sale scheme by CBN. From September 4, Bureau de Change would begin to receive the CBN disbursement in four zones of the country.

While speaking on the Disbursement, Gwadabe said, “The ordinary financial transactions or funding of transactions for disbursement will start this Friday in four zones. So we are happy to announce to CBN that our waiting areas are ready and we are engaging the payment service providers in all the five payment services areas to ensure we have smooth operations.”

Meanwhile, the association has introduced '360 QMS', a queuing management system that enables members work virtually from the comfort of their homes; about 4,000 members are already on the platform.