FX: BDCs merger, acquisitions imminent as CBN makes U-turn
In a bid to meet the Central Bank of Nigeria (CBN) flexible foreign exchange policy, the President of Association of Bureau de Change operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, has disclosed that Bureau De Change operators merger and acquisitions is now imminent.
The ABCON boss, urged CBN to introduce a portal whereby the operators can operate on an automated monitoring system for transparency in the new window market.
He said: “Mergers and acquisitions will depend on the CBN reintroducing the huge N35 million caution deposit which proved to be counterproductive and ineffective in BDCs monitoring and efficiency.
“The best thing to do is the automation of our documentation requirements and operational process for all online real-time monitoring.
“We have submitted our comprehensive reform Agenda to CBN on positioning the BDCs sub sector and only waiting for the approval of the CBN to hit the ground running “, he explained.
While explaining the benefits of the recent mind -rubbing session with the apex bank, he said , “The take home point for stakeholders is the granting of the BDCs request by the CBN to admit them into the newly introduced single forex market.
He said that BDCs play a vital role in ensuring that there is stability in the exchange rate in the economy.
It would be recalled that during the last interface between BDC operators and the CBN held recently in Lagos, the representative of the CBN Governor, Godwin Emefiele, who is the Deputy Director, Financial Policy and Regulation, Anthony Ikem, told the BDC operators to be hopeful in their inclusion in the new forex regime.
Ikem noted, “I am here on behalf of the management of CBN to encourage you and let you know that all hopes are not lost. CBN is not un-mindful of the possible effects of the new policy on BDCs.
According to him, as we speak, the management is working hard to see how it can accommodate and carry every stakeholder along so that there will be joy in the land. All that CBN is asking of you is to be patient and cooperate with it to see what can come out of it.
“This is a new policy but with an ongoing effort to see how BDCs will be carried along, because CBN recognises the importance of your operations to the economy of this country,” he stated.
