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Bureau de Change (BDCs) operators in Nigeria are kicking over Central Bank of Nigeria's adjustment in forex policy.
The CBN on Monday adjusted by reviewing the naira-dollar rate for travelers, students and Medical fees from 376 to 360 and ordered to start honoring the new rate with immediate effect.
But the black market operator said they will not participate in today’s $25 million weekly dollar auction by the Central Bank of Nigeria (CBN).
President of Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe said market fundamentals, including the current selling rate of $381 to dollar do not favour the BDCs when International Money Transfer Operators, IMTO sells below the rate.
He told The Nation Newspaper that definitely, we will not be part of Tuesday's auction. The market fundamentals do not support our participation in the auction. Remember that the money is from the International Money Transfer Operators (IMTOs) proceeds, which the CBN sells at N381 to dollar, far above the banks’ selling rate of N360 to dollar and parallel market rate of about N380 to dollar,” he told The Nation.
He urged the CBN to review the IMTOs’ rate to N330 to dollar, which was the previous rate at which the operators bought. “The CBN should return the IMTOs cash to original rate of N330 to dollar for the BDCs to continue to buy”.
Recall that last week, the CBN-licensed BDCs incurred regulatory losses of 130 million naira over CBN’s disparity in applicable exchange rates among players in the market.
Related: Bureau De Change Operators Lose N130m As Naira Gains
The CBN on Monday adjusted by reviewing the naira-dollar rate for travelers, students and Medical fees from 376 to 360 and ordered to start honoring the new rate with immediate effect.
But the black market operator said they will not participate in today’s $25 million weekly dollar auction by the Central Bank of Nigeria (CBN).
President of Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe said market fundamentals, including the current selling rate of $381 to dollar do not favour the BDCs when International Money Transfer Operators, IMTO sells below the rate.
He told The Nation Newspaper that definitely, we will not be part of Tuesday's auction. The market fundamentals do not support our participation in the auction. Remember that the money is from the International Money Transfer Operators (IMTOs) proceeds, which the CBN sells at N381 to dollar, far above the banks’ selling rate of N360 to dollar and parallel market rate of about N380 to dollar,” he told The Nation.
He urged the CBN to review the IMTOs’ rate to N330 to dollar, which was the previous rate at which the operators bought. “The CBN should return the IMTOs cash to original rate of N330 to dollar for the BDCs to continue to buy”.
Recall that last week, the CBN-licensed BDCs incurred regulatory losses of 130 million naira over CBN’s disparity in applicable exchange rates among players in the market.
Related: Bureau De Change Operators Lose N130m As Naira Gains