From this post on the front page https://www.nairaland.com/2864650/cbn-replace-local-bureau-de-changes-travelex

The CBN is proposing to replace Bureau De Change (BDC) operators with Travelex. This move will allow Travelex to take over the retail segment of the BDCs, in order to checkmate the inflated exchange rate by the BDCs against the official rate from the CBN.

A quick research on Travelex tells that the firm is foreign, owned by the US. https://www.travelex.com
Which means the maximum profit from this deal with Travelex doesn't belong to Nigeria(ns), irrespective of the amount of Nigerians this foreign exchange dealer employs.

An alternative way out
The CBN has branches in all state capitals, which I believe handing over this operation of creating minimum of three outlets (exchange offices) in every top three cities of their states can be effectively handled by them. And more outlets for populated cities with much economics activities.

The benefits
The exchange rate can be perfectly regulated with minimum gap between the official rate and the parallel market rate.
Profit goes to the government after those Nigerians employed(by the CBN state HQs) to work in these outlets have been paid.

With the present state of the economy, I believe the Government should encourage the citizens against too much dependence on foreign services and goods that we can create locally. Except the CBN does not have the financial expertise and logistics that Travelex has, there is no brain in this proposed deal.

Same way how our budget contains certain millions to be spent on German rides for the presidency in 2016. What stops them from buying locally assembled foreign automobiles, if they have no interest in locally mades ones (for reasons best known to them)?

Perhaps there is something I'm missing, Economists should please explain to us how 'Travelex' is the best option for retailing of foreign exchange.

This country shouldn't be for sale.

And where will d hard currency come from?CBN is in short supply of dollars,travelex is a us based company dat can source usd frm anywr.D policy will simply increase supply and reduce price.

PaulJohn1:
From this post on the front page https://www.nairaland.com/2864650/cbn-replace-local-bureau-de-changes-travelex

The CBN is proposing to replace Bureau De Change (BDC) operators with Travelex. This move will allow Travelex to take over the retail segment of the BDCs, in order to checkmate the inflated exchange rate by the BDCs against the official rate from the CBN.

A quick research on Travelex tells that the firm is foreign, owned by the US. https://www.travelex.com
Which means the maximum profit from this deal with Travelex doesn't belong to Nigeria(ns), irrespective of the amount of Nigerians this foreign exchange dealer employs.

An alternative way out
The CBN has branches in all state capitals, which I believe handing over this operation of creating minimum of three outlets (exchange offices) in every top three cities of their states can be effectively handled by them. And more outlets for populated cities with much economics activities.

The benefits
The exchange rate can be perfectly regulated with minimum gap between the official rate and the parallel market rate.
Profit goes to the government after those Nigerians employed(by the CBN state HQs) to work in these outlets have been paid.

With the present state of the economy, I believe the Government should encourage the citizens against too much dependence on foreign services and goods that we can create locally. Except the CBN does not have the financial expertise and logistics that Travelex has, there is no brain in this proposed deal.

Same way how our budget contains certain millions to be spent on German rides for the presidency in 2016. What stops them from buying locally assembled foreign automobiles, if they have no interest in locally mades ones (for reasons best known to them)?

Perhaps there is something I'm missing, Economists should please explain to us how 'Travelex' is the best option for retailing of foreign exchange.

This country shouldn't be for sale.

How do you suggest CBN should start attending to retail fx customers? That is not their job at all. Even if mandated, their flaws will show. It is good to know your limit, and that is what they are trying to demonstrate.

From what I gather, CBN has lost confidence in local organisations. They constantly pleaded with the BDCs to bring the rate down, to no avail. CBN at a point doubled the weekly payout valume to $60,000 to try and bring the rate down, but it even got worse! Not only did the BDCs flagrantly sold way higher than the stipulated rate, they sold in bulk, using fake documents to render returns to the CBN.

Travelex already sanitised Lagos BDC operation, which CBN themselves could not do in years! Lagos BDC operators confirmed this. This present situation played out in 2002/03. The official to parallel market rate margin was very high. Travelex was called in to help out, which they did. They are very professional, experienced, with sound expertise. If we need to play by the rules, they are the way to go. And for the records, Travelex is not American owned.

Kashif:


How do you suggest CBN should start attending to retail fx customers? That is not their job at all. Even if mandated, their flaws will show. It is good to know your limit, and that is what they are trying to demonstrate.

From what I gather, CBN has lost confidence in local organisations. They constantly pleaded with the BDCs to bring the rate down, to no avail. CBN at a point doubled the weekly payout valume to $60,000 to try and bring the rate down, but it even got worse! Not only did the BDCs flagrantly sold way higher than the stipulated rate, they sold in bulk, using fake documents to render returns to the CBN.

Travelex already sanitised Lagos BDC operation, which CBN themselves could not do in years! Lagos BDC operators confirmed this. This present situation played out in 2002/03. The official to parallel market rate margin was very high. Travelex was called in to help out, which they did. They are very professional, experienced, with sound expertise. If we need to play by the rules, they are the way to go. And for the records, Travelex is not American owned.

Thanks for the enlightenment. Though doesn't tell enough on how the CBN can't organise the retail process. Or run a BDC outlets.