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LequteMan
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The Central Bank of Nigeria, CBN, has terminated the role of all commercial banks acting as agents of international money transfer operators to always sell foreign currency remittances to licensed Bureau De Change (BDC) operators.
All but First Bank were sacked.
A source in the banking industry said the CBN took the decision because the returns on forex sales showed that the affected banks had not been active in selling the greenback to BDC operators since the directive was given in July.
All the affected banks are expected to sell their dollar inflows from remittances to Travelex, for onward sale to the BDCs. A circular was issued to all banks to this effect on Wednesday.
This would help “remove the huge inflows from remittances the banks have been sitting on," the source added.
CBN also suspended a total of 195 BDC operators, over failure to renew their operating licences on Wednesday.
President of the Bureau de Change Association of Nigeria, Aminu Gwadabe said the decision was a good one as it would help strengthen naira and improve dollar liquidity in the market.
“It will ensure that more dollar are distributed to BDCs in uniform and transparent manner as some of the banks have not been selling funds from the international money transfer operators (IMTOs).
“If you check, since Travelex started selling to BDCs, speculation has reduced in the market and the naira is on the path of recovery. My advise to our members is to partner with the central bank on this project. I advice everybody to be patriotic, any member that goes against the rule would be punished,” Gwadabe said
ThisDay
All but First Bank were sacked.
A source in the banking industry said the CBN took the decision because the returns on forex sales showed that the affected banks had not been active in selling the greenback to BDC operators since the directive was given in July.
All the affected banks are expected to sell their dollar inflows from remittances to Travelex, for onward sale to the BDCs. A circular was issued to all banks to this effect on Wednesday.
This would help “remove the huge inflows from remittances the banks have been sitting on," the source added.
CBN also suspended a total of 195 BDC operators, over failure to renew their operating licences on Wednesday.
President of the Bureau de Change Association of Nigeria, Aminu Gwadabe said the decision was a good one as it would help strengthen naira and improve dollar liquidity in the market.
“It will ensure that more dollar are distributed to BDCs in uniform and transparent manner as some of the banks have not been selling funds from the international money transfer operators (IMTOs).
“If you check, since Travelex started selling to BDCs, speculation has reduced in the market and the naira is on the path of recovery. My advise to our members is to partner with the central bank on this project. I advice everybody to be patriotic, any member that goes against the rule would be punished,” Gwadabe said
ThisDay
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