By Chijioke Nelson

Read riot act to errant members

The directors of over 3,000 Bureaux De Change (BDCs) said they are now resolved to fully align with regulator to achieve the elusive rates’ convergence, at its strategic meeting today, in Lagos.


The meeting, which is expected to come out with strategic decisions on ways to force down dollar rates and narrow the gaps between official and parallel market rates, became necessary following last week’s sudden depreciation of the naira against dollar, which they said was against the interest of their operations and economy.

The naira closed last Friday at N405 to the dollar in the parallel market, after stabilising at N380 to dollar the previous week.

President, Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, said the meeting with theme: “Role of BDCs in Price Stability- Realities and Compliance”, will be used to warn erring BDC directors on the consequences of violating operating guidelines.

He said the BDCs will continue to support the exchange rate stability objective of the Central Bank of Nigeria (CBN) and also ensure that official and parallel market rate convergence is achieved.
Gwadade pointed out that BDCs helped the CBN to narrow the current exchange rate gap from N520 to present rate, and will continue to achieve better results as the CBN continues to fund BDCs with increased dollar allocations.

The ABCON chief, who said that BDC directors are the owners of the business, and should understand that they carry corporate governance burden, reiterated that they directly face sanctions when their operations run contrary to guidelines.

The ABCON boss said that BDCs’ capital is eroded anytime exchange rates go up, and naira is depreciated. “We suffer financial losses anytime the naira depreciates. We want a better and harmonised exchange rate,” he said.

He praised the CBN for giving each BDC $20,000 last week, adding that the funds will help to further strengthen the naira against the dollar.


Source@http://www.nairausd.com/2017/04/bdcs-in-fresh-move-to-force-rate.html

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