CBN clears 3114 BDCs to access IMTSO proceeds

The Association of licensed BDCs. Operators of Nigeria (ABCON) has said that no less than 3114 of its members have been cleared by the Central Bank of Nigeria (CBN), in an effort to begin collection of the proceeds of International Money Transfers Operators (IMTSO).

Earlier, the CBN had granted approval to authorised dealers who are agents to sell foreign currency accruing from inward money remittances to licensed BDCs.

Speaking on this development, President of the association, Alhaji Aminu Gwadabe, told our correspondent that the CBN has cleared 3114 BDCs for collection of the proceeds of IMTSO beginning this week.

With the Nigerian currency, Naira, on Thursday closed at 460 per US dollar, the same rate it traded on Wednesday but slightly better than 463/$ it sold in the early hour of yesterday.

Gwadebe said that the volatility in the market is evidenced of the scarcity at the BDCs sub sector despite the injection of liquidity in the interbank market.

According to him, ABCON is working with CBN for review of volumes for the BDCs next week from the present volume of $8000:00 per week to $15000:00 weekly from the beginning of next week.

He therefore, warned its members not to be involved in hoarding and speculation as the apex bank is determined to smoke speculators and hackers out of their holes.

Meanwhile, the apex lender on Tuesday injected another sum of 100 million dollars into the interbank foreign exchange market, its acting Director, Corporate Communications, Isaac Okorafor has said.

Okorafor said the measure became necessary as part of the initiatives to make Forex easily accessible, thereby crashing demand at the black market.

He said that the measure was to fund the commercial banks with enough Forex to cater for the request of customers and to meet basic travelling allowance, medicals and tuition fees.

This fresh injection by the apex bank brings the amount so far pumped into the interbank Forex market within the last two weeks to 1.14 billion dollars for both forwards and invisibles.

A former Economic Adviser to former President Olusegun Obasanjo, Prof. Ode Ojowu said the measure would further create problems for currency speculators who had not recover from the sudden appreciation of the Naira.

“It appears this time around, the CBN has decided to become smarter than the market manipulators by putting on its cap of authority to look beneath the market forces,” he said.