By Babajide Komolafe
The Association of Bureaux De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to increase the margin allowed for BDCs on foreign exchange transactions.
Making this appeal yesterday at a webinar organised by the association, ABCON President, Aminu Gwadabe, said the N2 margin per dollar presently allowed by the apex bank is grossly inadequate in view of the huge operating cost of BDCs.
Titled, “Resumption of Foreign Currency Sales to BDCS; COVID-19 Challenges, Compliance and Way Forward”, the webinar was organised to sensitise BDC operators on the processes put in place by the CBN and ABCON to ensure seamless dollar purchase by members of the public through BDCs.
Citing the example of other countries where BDCs enjoy up to six percent margin per dollar, Gwadabe stressed that even the N2 per dollar allowed by the CBN is not up to the three percent margin preiously allowed by the apex bank at the commencement dollar sale scheme”.
He said: “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.”
“Cannot cover our cost of operation. We are asking the CBN to please look at this and review it for us.” Gwadabe also urged the CBN to allow for the use of virtual documentation which he said would help in curbing the spread of the Covid-19 pandemic.”