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CBN Cuts Bdcs’ Dollar Sales To $10,000 - Business - Nairaland

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CBN Resumes Dollar Sales To BDCs / Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs / CBN Considers Ending Dollar Cash Sales To BDCs (1) (2) (3) (4)

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CBN Cuts Bdcs’ Dollar Sales To $10,000 by eyesofgod: 7:54am On Jan 05, 2016
The Central Bank of Nigeria (CBN) will on Wednesday sell $10,000 to each of the 2,839 bureaux de change (BDC) operators it approved last week.

President, Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, who made this known yesterday, said the CBN took the decision because demand for dollar is still low as business activities were yet to pick up after the holidays.

He said the CBN has promised to continue the intervention to bridge the widening gap between the official and parallel market rates, saying the naira still exchanges for between N262 to N265 against the dollar at the parallel market, but exchanges for N199 at the official market.

Also, the CBN has issued new guidelines for the operation of BDCs which pegged the minimum capital base and cautionary deposits for intending operators at N70 million.

The guideline, which is in line with the exercise of the powers conferred on it by the Central Bank of Nigeria Act of 2007 and the Banks and Other Financial Institutions Act 2004 (BOFIA), also stipulates a non-refundable application fee of N100,000 and non-refundable licensing fee of N1 million.

The circular, which took effect on January 1, orders retail money exchanges to deposit a mandatory cautionary deposit of N35 million in an account with the CBN, in addition to a minimum capital requirement of N35 million.

The CBN has been struggling to shore up the naira, hit by the plunge in oil prices which started late last year.

According to the guideline, an intending BDC operator is also to provide non-refundable annual licensing renewal fee of N 250,000 and a non-refundable change of name fee of N100,000.

The new guideline stipulated that no person shall carry on the business of BDC in Nigeria, except with the prior authorization of the CBN. It also stipulated that a BDC shall be construed as any company that is licenced to carry on small scale foreign exchange business in Nigeria and whose sole object is the carrying on of such business on a stand-alone basis. It said the application for BDC licence shall be processed in two stages, namely: approval-in-principle (AIP) and final licence.

For the AIP, a formal application to the CBN Governor to grant the promoters an AIP to carry on the business of a BDC in Nigeria is required. Also, a non-refundable application fee of N100,000 or such other amount as may be determined by the Bank from time to time in bank draft payable to the Central Bank of Nigeria.

“There also should be an evidence of payment of the prescribed minimum capital of N35 million or any other amount as may be determined by the CBN from time to time, into the designated CBN account. The bank shall refund this amount with interest after the proposed institution has obtained its final licence,” it said.

The guideline, also said that not later than six months after the grant of AIP has been secured, the promoters of a proposed BDC shall submit application for the grant of a final licence to the Governor, with evidence of payment of a non-refundable licencing fee of N1 million only, or any other amount as may be determined by the CBN from time to time among other conditions.

“There should also be evidence of payment of N35 million mandatory caution deposit, or any other amount as may be determined by the CBN from time to time, into a designated CBN account and evidence of having suitable office accommodation for the operation of the proposed BDC,” it said.

It stipulates that the qualifications and experiences of the Managing Director/CEO shall be first degree or its equivalent in any discipline with three years post-graduation while the minimum qualifications and experience shall be first degree or its equivalent in any discipline with two years post-graduation experience.

“One of the Management staff appointed above should be designated as compliance officer for the purpose of ensuring compliance with all regulatory guidelines and circulars,” it said.

It said any person/individual wishing to sell foreign currency above $10,000 or its equivalent to a BDC shall be required to disclose the source. “The maximum amount per transaction for a BDC shall be determined from time to time by the CBN with respect to business and personal travel allowances. The maximum amount currently for Personal Travel Allowance and Business Travel Allowance (BTA) per quarter is $4,000 and $5,000,respectively.

www.thenationonlineng.net/cbn-cuts-bdcs-dollar-sales-to-10000/

2 Likes

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by tos4u(m): 7:58am On Jan 05, 2016
D way CBN is cutting dis days, they may begin to cut peoples leg oooo, ABEG WATCH U LEG OOO

17 Likes 4 Shares

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by ShowYourCertificate: 8:14am On Jan 05, 2016
Buharinomics. How do you expect someone who didn't pass economics in his non-existent WASC Certificate to fare with our economy? undecided

Buhari's dullardity knows no bound.

34 Likes 6 Shares

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by mysteriousman(m): 8:15am On Jan 05, 2016
I think they wouldn't continue in this line of action if they don't feel it's best for the country.

7 Likes

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by phantonce(m): 9:17am On Jan 05, 2016
K
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by kennyman2000(m): 10:20am On Jan 05, 2016
Hmmmmmm....
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by miqos02(m): 3:27pm On Jan 05, 2016
ok
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by KpStone(m): 3:28pm On Jan 05, 2016
We talk am

9 Likes 2 Shares

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by moneybag100: 3:28pm On Jan 05, 2016
Useless policies that hasn't yield any positive result since. Fuc.king Clueless cbn governor.

1 Like 1 Share

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by anonimi: 3:28pm On Jan 05, 2016
mysteriousman:
I think they wouldn't continue in this line of action if they don't feel it's best for the country.

You better wake up and smell the akamu before it is too late.






13 Likes 3 Shares

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by adex15(m): 3:29pm On Jan 05, 2016
Its well for naija oooo

1 Like

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by Beedemi247: 3:30pm On Jan 05, 2016
okk
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by Demmocrats(m): 3:31pm On Jan 05, 2016
He said the CBN has promised to continue the intervention to bridge the widening gap between the official and parallel market rates, saying the naira still exchanges for between N262 to N265 against the dollar at the parallel market, but exchanges for N199 at the official market.

Which one is official market, which bank sells at 199?

20 Likes 4 Shares

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by Nobody: 3:32pm On Jan 05, 2016
Nice one
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by jonmu(m): 3:32pm On Jan 05, 2016
nigeria would b great.. One_day {not with oil}...
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by looseweight: 3:32pm On Jan 05, 2016
It's well ooo
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by nasty45(m): 3:33pm On Jan 05, 2016
Ok
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by azzima(m): 3:35pm On Jan 05, 2016
mysteriousman:
I think they wouldn't continue in this line of action if they don't feel it's best for the country.
God bless you!!!!!

1 Like 1 Share

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by new2020: 3:35pm On Jan 05, 2016
moneybag100:
Useless policies that hasn't yield any positive result since. Fuc.king Clueless cbn governor.

What about the dumb weave-wearing Imbecilic Kemi Adeosun.

3 Likes

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by Tochaigh: 3:35pm On Jan 05, 2016
I have an article that proves emifiele a slowpoke coming soon.

What many Nigerians don't know is that even though the central bank pegged the exchange rate, it's still spending billions of scarce forex defending that fixed rate, because if it doesn't the black market will destroy the CBN.

Exchange rate, pegged or free flowing will always be determined by demand and supply in an economy like Nigeria's. Useless policies on top of piles of useless policies.

Enough said. My article is loading.

13 Likes 2 Shares

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by val4sure(m): 3:37pm On Jan 05, 2016
I pray for a better Nigeria

2 Likes 1 Share

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by mccoy47(m): 3:38pm On Jan 05, 2016
Emiefele economics
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by Nobody: 3:38pm On Jan 05, 2016
nduu.si@gmail.com......Goodnews! For easy n efficient dollar/pounds transfer, we are always here to help.
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by appini: 3:39pm On Jan 05, 2016
Buhari has finally come

1 Like

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by ojay2053(m): 3:39pm On Jan 05, 2016
What sort of rubbish is this, stupid policy, why not cut it to $1,000, rubbish.

1 Like

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by erico2k2(m): 3:40pm On Jan 05, 2016
$10 k imagine.I can do better than that even.

4 Likes 1 Share

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by babzy2: 3:41pm On Jan 05, 2016
Na wa ooo....When will baba no certificate equal 1naira to a dollar undecided

2 Likes

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by Nobody: 3:41pm On Jan 05, 2016
Ok
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by linnyx: 3:41pm On Jan 05, 2016
While I understand that there are no quick fixes to the economy, some of these I believe are doing more harm than good. I really do hope they are thinking things through before coming up with them (policies) cos it doesn't seem so.
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by akhis: 3:41pm On Jan 05, 2016
sincerely I dont even see a need for keeping BDC. The earlier the govt takes a bold step to scrap them completely the better for the nation.

1 Like

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by Forwetinnah: 3:44pm On Jan 05, 2016
And if the mallam still devalues the Naira after all these Gra gra. ..shame na APC own

2 Likes

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by deeswagger: 3:44pm On Jan 05, 2016
Okay

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