₦airaland Forum

The  Association of Bureaux De Change Operators of Nigeria (ABCON) has appealed to the Central Bank of Nigeria (CBN) to make Bureaux De Change (BDCs) payout agents for Diaspora remittances.

ABCON President Aminu Gwadabe, who disclosed this to financial journalists in Lagos at the weekend, said the apex bank should leverage on the over 5,000 licensed BDCs across the six geopolitical zones of Nigeria to get the greenback seamlessly to beneficiaries.

Gwadabe said the proposal would provide a more convenient channel for Nigerians in the Diaspora to remit funds back to the country to boost economic development.

According to the ABCON boss, the annual remittance inflow of close to $25 billion is critical to Nigeria’s currency management and stability and should be given seamless flow to the economy.

Such funds, he added, would support Nigeria’s balance of payment position, reduce dependence on external borrowing and mitigate the impact of COVID-19 on foreign exchange inflows into the country.

He said BDCs remain the largest foreign currency operators in Nigeria, hence making them payout agents for Diaspora remittances will protect the market from forex cartels that refuse to follow rules set by the apex bank.

According to Gwadabe, the need to bring BDCs into the Diaspora remittances collection business has become exigent following reports of abuse by Mobile Money Operators (MMOs) opposed to paying remittances beneficiaries in dollars as mandated by the CBN.

On November 30, CBN stated that beneficiaries of Diaspora Remittances through International Money Transfer Operators (IMTOs) shall henceforth receive such inflows in foreign currency (US dollars) through the designated banks of their choice.

Gwadabe applauded the CBN’s directive, saying it would put an end to malpractices perpetually making the dollar scarce and keeping the local currency at the mercy of the greenback.

https://dailytrust.com/diaspora-remittances-make-us-agents-bdcs-to-cbn

This in my honest opinion should've been the best option in the remittance policy released recently.

iwaeda:
The  Association of Bureaux De Change Operators of Nigeria (ABCON) has appealed to the Central Bank of Nigeria (CBN) to make Bureaux De Change (BDCs) payout agents for Diaspora remittances.

ABCON President Aminu Gwadabe, who disclosed this to financial journalists in Lagos at the weekend, said the apex bank should leverage on the over 5,000 licensed BDCs across the six geopolitical zones of Nigeria to get the greenback seamlessly to beneficiaries.

Gwadabe said the proposal would provide a more convenient channel for Nigerians in the Diaspora to remit funds back to the country to boost economic development.

According to the ABCON boss, the annual remittance inflow of close to $25 billion is critical to Nigeria’s currency management and stability and should be given seamless flow to the economy.

Such funds, he added, would support Nigeria’s balance of payment position, reduce dependence on external borrowing and mitigate the impact of COVID-19 on foreign exchange inflows into the country.

He said BDCs remain the largest foreign currency operators in Nigeria, hence making them payout agents for Diaspora remittances will protect the market from forex cartels that refuse to follow rules set by the apex bank.

According to Gwadabe, the need to bring BDCs into the Diaspora remittances collection business has become exigent following reports of abuse by Mobile Money Operators (MMOs) opposed to paying remittances beneficiaries in dollars as mandated by the CBN.

On November 30, CBN stated that beneficiaries of Diaspora Remittances through International Money Transfer Operators (IMTOs) shall henceforth receive such inflows in foreign currency (US dollars) through the designated banks of their choice.

Gwadabe applauded the CBN’s directive, saying it would put an end to malpractices perpetually making the dollar scarce and keeping the local currency at the mercy of the greenback.

https://dailytrust.com/diaspora-remittances-make-us-agents-bdcs-to-cbn

Dollar poun Dollar poun

bigtt76:
This in my honest opinion should've been the best option in the remittance policy released recently.

If we are a transparent country, Banks would have been better options.

True and even at that, the BDCs are the worst but the better evil compared to having beneficiaries sell to the black marketers of which the BDCs form a large chunk. The only good thing is the CBN would be able to monitor the BDCs if they chose to.

iwaeda:
If we are a transparent country, Banks would have been better options.

Hell no.

Who want to be at the mercy of a union of bdcs that can organize and fix price for their own benefit

Let the market be open for all, a free market, the best price and competitive price should be sorted after.

When union of bdc determines price of dollars or foreign exchange, it always lead to diaster

the blanket has been removed, fùck up the businesses of southerners who own remittance apps/companies then handover the business to aboki alone.... Na so the game be since we wont have choice again

Shame to south politicians

bigtt76:
This in my honest opinion should've been the best option in the remittance policy released recently.

Why then do we have banks?

thebosstrevor1:
Hell no.

Who want to be at the mercy of a union of bdcs that can organize and fix price for their own benefit

Let the market be open for all, a free market, the best price and competitive price should be sorted after.

When union of bdc determines price of dollars or foreign exchange, it always lead to diaster

Why should there be official BDC in a sane country?

What are the banks doing?

bigtt76:
True and even at that, the BDCs are the worst but the better evil compared to having beneficiaries sell to the black marketers of which the BDCs form a large chunk. The only good thing is the CBN would be able to monitor the BDCs if they chose to.

What are the two evils here because the only evil here is the federal government in accomplice with the CBN.

soulpeppersoup:
Why should there be official BDC in a sane country?
What are the banks doing?

Where did you get the idea that Nigeria is a sane country from?

The two evils here are the BDCs and the black marketers. The BDCs are easily controlled if the will is there but the black marketers, no. I don't know how the FG and the CBN are the evils here ...you might wish to elucidate more on that

soulpeppersoup:
What are the two evils here because the only evil here is the federal government in accomplice with the CBN.

Even if they chose to fix the exchange rates, they can't do it in such a way as would affect their liquidity. Its just like the black marketers exchanging the dollar for say N475 and expect to sell at say N480 (banks per CBN regulation sells at N395 for example), who do you think the manufacturers or others in need of dollars would go to?

A time would come when the black marketers would have their hands full and need to offload them, they would have to do so at a loss.

thebosstrevor1:
Hell no.

Who want to be at the mercy of a union of bdcs that can organize and fix price for their own benefit

Let the market be open for all, a free market, the best price and competitive price should be sorted after.

When union of bdc determines price of dollars or foreign exchange, it always lead to diaster

thebosstrevor1:
Hell no.

Who want to be at the mercy of a union of bdcs that can organize and fix price for their own benefit

Let the market be open for all, a free market, the best price and competitive price should be sorted after.

When union of bdc determines price of dollars or foreign exchange, it always lead to diaster

Fixed!
With their statement, it seems bdc agents are in panic mode due to recent CBN policy.

Stupid policy.. Imagine you need money after 5 PM on Friday, you have to wait until the banks open on Monday to get dollars and then go to Aboki to change to Naira and then go back to your bank to deposit.

Some people lived abroad and now retired in NIgeria with pensions coming from abroad so they are expected to go through the hassle of going to the bank to get dollars and then to Aboki.

This Policy would have been good as an option along with the Naira option.

-By the time these Jihadists finish with the so-called Nigerians, Ghana and Cameroon will be heaven to them.

-Imagine, being in an emergency situation in a hospital and your only source of assistance is from abroad; are you expected to go and face this dollar withdrawal and exchange issues before facing the emergency issue? This people will soon take away the mobile phones and ask everyone to go back to the days of NITEL.

-Backward People that were giving both political and economic powers to do as they pleases.

bigtt76:
This in my honest opinion should've been the best option in the remittance policy released recently.

The mallams know a lot about forex arbitrage, no doubt, but they are abnormally greedy people.

Much of Nigeria's forex problem originated from within a murky terrain of self-interest inhabited by three categories of player: CBN top dogs, treasurers of commercial banks and these same aboki BDC retailers.

They want to monopolize diaspora remittance again? How many Southerners are members of the BDC in Nigeria? Choice of currency of payment should be optional, IMO, and the market should be open without special attachment to banks or any yeye BDC who will keep holding us to ransom!

bigtt76:
The two evils here are the BDCs and the black marketers. The BDCs are easily controlled if the will is there but the black marketers, no. I don't know how the FG and the CBN are the evils here ...you might wish to elucidate more on that

No sane country has BDC with the existence of banking institutions. The government created such economic sabotage. The CBN encourages them.

You don't know CBN make money from them, the make money from Nigerians. No one loose except the economy.

soulpeppersoup:
No sane country has BDC with the existence of banking institutions. The government created such economic sabotage. The CBN encourages them.

You don't know CBN make money from them, the make money from Nigerians. No one loose except the economy.

That thing is an aberration and has no place in any civilized economy. It's nothing but a conduit pipe for siphoning scarce forex while enabling mammoth corruption..

Rugaria:
That thing is a aberration and has no place in any civilized economy. It's nothing but a conduit pipe for siphoning scarce forex while enabling mammoth corruption..

The profit made from there over time is the difference between the price of naira and other currencies.

This is the highest corruption in this country.