Following recent developments in the operations of BDCs in the country, more Bureaux De Change have scaled the CBN’s N35m mandatory capital base.
The apex bank through the figures it released yesterday Wednesday 27th showed that 128BDCs recapitalized in the last one week bringing the total number of BDC operators to 2,964.
Nearly N100billion is expected to be refunded back to the BDCs by CBN that paid the mandatory N35 million deposit that was scrapped last week.
In a circular signed by CBN’s Director, Financial Policy & Regulation, Kelvin Amugo, said the decision was reached following recent developments in the operations of BDCs in the economy, prompting the apex bank to refund the mandatory caution deposit of N35 million each to all BDC operators.
He went further to say that the regulators will keep the N1 million licensing fee paid by each of the operators and all eligible BDCs are to apply for a refund of their caution deposits, attaching evidence of payments and bank transfer details.
Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON), said this is a welcome development.
He said the initiative is an indication that the CBN has finally shut its doors to the BDCs. He said since the caution deposit was to enable operators’ access the official forex window, the stoppage of dollar sales to BDCs by the CBN means the fund should be refunded.
Gwadabe said the operators are still awaiting CBN’s modalities on accessing the autonomous forex market, to enable them continue in business.
He said the fund will go a long way in boosting capacity of operators to stay in business, and also to source funds from other quarters.
The CBN Governor, Godwin Emefiele had announced a new foreign exchange (forex) policy that includes the stoppage of weekly dollar sales to BDCs.
Emefiele said the regulator would henceforth discontinue its sales of foreign exchange to BDCs, adding that operators in this segment of the market would now need to source their foreign exchange from autonomous sources.
“They must however note that the CBN would deploy more resources to monitoring these sources to ensure that no operator is in violation of our anti-money laundering laws,” Emefiele said at a news conference on the review of the forex policy in Abuja.
