₦airaland Forum

Welcome, Guest: Join Nairaland / LOGIN! / Trending / Recent / New
Stats: 2,294,940 members, 5,041,197 topics. Date: Wednesday, 17 July 2019 at 12:29 AM

CBN Considers Ending Dollar Cash Sales To BDCs - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / CBN Considers Ending Dollar Cash Sales To BDCs (22009 Views)

CBN Resumes Dollar Sales To BDCs / CBN To Banks: Sell Forex To BDCs - Nairametrics / Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs (2) (3) (4)

(1) (2) (3) (4) (Reply) (Go Down)

CBN Considers Ending Dollar Cash Sales To BDCs by Adesiji77: 4:42pm On Dec 11, 2015
There are strong indications that the Central Bank of Nigeria (CBN) is seriously considering discontinuing its twice-weekly dollar cash sales to bureau de change (BDC) operators as it seeks to sanitise the sub-sector.

The move, THISDAY gathered from a very reliable central bank source, is targeted at reducing growing pressure on the country’s foreign reserves, which have fallen in the past few weeks in lockstep with the exchange rate of the naira at the parallel market.

Nigeria’s foreign reserves stood at $29.597 billion on December 7, according to data on the central bank’s website.

In place of cash, the central bank is considering introducing prepaid electronic cards that will stem the sale of cash by currency dealers to their customers, the source disclosed yesterday.

The CBN last week suspended about 1,600 BDC operators from participating in its weekly forex auction. The regulator’s hammer fell on the currency dealers over their failure to render appropriate returns on the sale of dollars.

The CBN recently warned banks and the forex dealers to ensure that they render proper returns on the dollars purchased from its official window or they would be sanctioned. Most of those affected were firms that gave false bank verification numbers (BVN) of their customers.

But THISDAY’s finding showed that the central bank also shut out a lot of operators from its auction this week. Presently, there are over 2,900 BDCs in the country.

“We are not selling dollar cash to a lot of BDCs because of the malpractices we observed and it might continue like that next week. But I must tell you that we are planning to reform the sector by introducing prepaid electronic cards.

“So when they (BDCs) apply for dollars and have shown evidence of the BVN, the CBN through its auction, would transfer the foreign currency to the BDC’s account, but they won’t be able to withdraw cash.

“Effectively, if a customer applies for dollars, the BDCs would transfer the cash to the customer’s prepaid card,” the source explained.
The CBN, in a recent circular, stated that it had observed that a number of the BDCs purchased foreign exchange from the CBN without rendering returns on its utilisation.

Consequently, it gave pre-conditions to the BDCs before they could access forex from the CBN window.
It directed that the BDCs must produce rendition of returns on purchases from a preceding week through e-FASS and render physical returns on utilisation of the forex.

“In addition, all BDCs that purchased forex on November 25 without submitting their returns for the previous week ending November 20 should return the total amount purchased for the week to the Bank not later than November 26, 2015, failing which appropriate sanctions will be imposed,” the CBN said.

The central bank has since the introduction of the BVN, as a requirement for dollar sales by BDCs last month, increased its searchlight on the sub-sector.

It revealed that the introduction of the BVN as a prerequisite for the purchase of forex by retail buyers had helped to check illegal transactions.

The CBN Governor, Mr. Godwin Ifeanyi Emefiele, recently confirmed that since the enforcement of the BVN rule on November 1, the number of BDCs seeking forex from the CBN for sale to retail buyers had crashed by 32 per cent. This, he said, was because the misapplication of forex and illegal transactions were no longer easy to perpetuate.

http://www.thisdaylive.com/articles/cbn-considers-ending-dollar-cash-sales-to-bdcs/227672/ lalasticlala

6 Likes 2 Shares

Re: CBN Considers Ending Dollar Cash Sales To BDCs by Nobody: 4:43pm On Dec 11, 2015
I hear bullshit...

4 Likes

Re: CBN Considers Ending Dollar Cash Sales To BDCs by Tallesty1(m): 4:46pm On Dec 11, 2015
gringringringringrin
Re: CBN Considers Ending Dollar Cash Sales To BDCs by modath(f): 5:39pm On Dec 11, 2015
If they are being sincere, why is it hard to render returns to CBN?

Unless it's the politician hiding loots in their homes that are doing the purchase!!

participating in its weekly forex auction. The regulator’s hammer fell on the currency dealers over their failure to render appropriate returns on the sale of dollars.

The CBN recently warned banks and the forex dealers to ensure that they render proper returns on the dollars purchased from its official window or they would be sanctioned. Most of those affected were firms that gave false bank verification numbers (BVN) of their customers.

9 Likes

Re: CBN Considers Ending Dollar Cash Sales To BDCs by lasisi69(m): 6:24pm On Dec 11, 2015
End time CBN

3 Likes

Re: CBN Considers Ending Dollar Cash Sales To BDCs by damton(m): 6:25pm On Dec 11, 2015
Fingers crossed
Re: CBN Considers Ending Dollar Cash Sales To BDCs by Donkunxex(m): 6:25pm On Dec 11, 2015
Do anything you can to strengthen our economy fast.. because i cant be buying a phone worth 300 dolars for 59 - 60k in naija excluding shipping and insurance. ThankYou cry

12 Likes 2 Shares

Re: CBN Considers Ending Dollar Cash Sales To BDCs by looseweight: 6:26pm On Dec 11, 2015
Nice move there

1 Like

Re: CBN Considers Ending Dollar Cash Sales To BDCs by princeonx: 6:27pm On Dec 11, 2015
They should just discontinue printing and using naira!

1 Like

Re: CBN Considers Ending Dollar Cash Sales To BDCs by austinonyii(m): 6:28pm On Dec 11, 2015
dollar is a satanic currency!! I have said it time without number

2 Likes

Re: CBN Considers Ending Dollar Cash Sales To BDCs by Elslim: 6:28pm On Dec 11, 2015
Goood

More strategies to frustrate looters of d Treasury.

7 Likes

Re: CBN Considers Ending Dollar Cash Sales To BDCs by koxi: 6:29pm On Dec 11, 2015
Really?
How will Dat solve the present economic hardship affecting all of us

3 Likes

Re: CBN Considers Ending Dollar Cash Sales To BDCs by chesterlee(m): 6:29pm On Dec 11, 2015
The masses are going through a lot of hardship, things have suddenly become costly. This Xmas wont be easy at all!!!


P.S. How much is petrol in your area?

3 Likes 1 Share

Re: CBN Considers Ending Dollar Cash Sales To BDCs by soleexx(m): 6:30pm On Dec 11, 2015
Congratulations grin
Re: CBN Considers Ending Dollar Cash Sales To BDCs by princeonx: 6:31pm On Dec 11, 2015
austinonyii:
dollar is a satanic currency!! I have said it time without number
What'a Fhu.ckk is this one saying?

21 Likes

Re: CBN Considers Ending Dollar Cash Sales To BDCs by gist4kidsblog: 6:31pm On Dec 11, 2015
Cbn awon jokers....
Alot of dis cbn staff... Bank manager
own a bureu de change oooo


awon liar oshi

3 Likes

Re: CBN Considers Ending Dollar Cash Sales To BDCs by adconline(m): 6:31pm On Dec 11, 2015
Why can't CBN sell to banks and they will in turn sell to customers with BVN?

20 Likes 4 Shares

Re: CBN Considers Ending Dollar Cash Sales To BDCs by greatiyk4u(m): 6:31pm On Dec 11, 2015
Since I am a novice in this topic............I can only shout
END TIME CBN

1 Like

Re: CBN Considers Ending Dollar Cash Sales To BDCs by Kposkila: 6:31pm On Dec 11, 2015
Indeed this Govt is working, let dem feel d brunt, Infact PMB shud change d currency n let all the ones dey stole n stored be a waste!

6 Likes 1 Share

Re: CBN Considers Ending Dollar Cash Sales To BDCs by Dollyak(f): 6:32pm On Dec 11, 2015
Well.. this is inevitable really otherwise the control of dollar supply will continue to polarise

2 Likes

Re: CBN Considers Ending Dollar Cash Sales To BDCs by gist4kidsblog: 6:32pm On Dec 11, 2015
austinonyii:
dollar is a satanic currency!! I have said it time without number

10 Likes 1 Share

Re: CBN Considers Ending Dollar Cash Sales To BDCs by seedorfg(m): 6:33pm On Dec 11, 2015
mi o gbo payan oooooo
Re: CBN Considers Ending Dollar Cash Sales To BDCs by salaboiz(m): 6:33pm On Dec 11, 2015
kush
Re: CBN Considers Ending Dollar Cash Sales To BDCs by seedorfg(m): 6:34pm On Dec 11, 2015
cbn and nnpc are scam !
Re: CBN Considers Ending Dollar Cash Sales To BDCs by NOBODYY: 6:35pm On Dec 11, 2015
i'm not grounded in economics..but i wouldnt mind if someone can explain to me Why dollar is always used like a "king kong" currency in the world when pounds even has more value than it.. .

Anyone?? undecided undecided undecided undecided undecided undecided undecided undecided undecided undecided undecided undecided undecided

1 Like

Re: CBN Considers Ending Dollar Cash Sales To BDCs by Nobody: 6:35pm On Dec 11, 2015
BDCs have to learn how to source their own dollars and sell.

That's how it's done everywhere.

7 Likes

Re: CBN Considers Ending Dollar Cash Sales To BDCs by dammytosh: 6:35pm On Dec 11, 2015
The politicans will not allow the currency to stabilize.


They have plenty stolen cash they are trying to reintegrate into the economy

6 Likes 1 Share

Re: CBN Considers Ending Dollar Cash Sales To BDCs by Boss13: 6:35pm On Dec 11, 2015
Laughs .... WTF. CBN is thinking. I have always wondered why electronic payments are not used. Now, there will be proper audit trail and violators will be prosecuted. The CBN should also know that our Politicians are the major customers to BDCs and they used BDCs to launder funds. We must reduce our dependency on cash and begin to embrace electronic mode of payment.

12 Likes 3 Shares

Re: CBN Considers Ending Dollar Cash Sales To BDCs by trulords(m): 6:36pm On Dec 11, 2015
wait!!!! continue....... wetin go do dem aboki wey dey hustle with dat kin paro cbn..... dem go soon rob una
Re: CBN Considers Ending Dollar Cash Sales To BDCs by teemy(m): 6:36pm On Dec 11, 2015
A really big move that would have the CBN finally in control of rates. Now the BDCs would be forced to make sales electronically close to the official N199 rate.

6 Likes 1 Share

Re: CBN Considers Ending Dollar Cash Sales To BDCs by Emekamex(m): 6:38pm On Dec 11, 2015
Body odour to the rescue

8 Likes 1 Share

Re: CBN Considers Ending Dollar Cash Sales To BDCs by Johnnoah1st: 6:38pm On Dec 11, 2015
what is cbn self?

(1) (2) (3) (4) (Reply)

IMF Affirms Nigeria As Africa’s Biggest Economy!!! / Tony Elumelu Enterpreneurship Foundation 2018 Successful Candidates (Full List) / 6 Super Tips On How To Find A Good Wholesaler

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (0) (1) (2) (3) (4) (5) (6) (7) (8) (9)

Nairaland - Copyright © 2005 - 2019 Oluwaseun Osewa. All rights reserved. See How To Advertise. 74
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.