Bureau De Change (BDC) operators, on Wednesday, said the profit margin on the new fixed rate on the exchange market being implemented by the Central Bank of Nigeria (CBN) was too small.
President of the association, Aminu Gwadabe, at a webinar for the operators, called on the CBN to review the profit margin.
Daily Trust reports that with effect from Monday, September 7, 2020, the CBN would begin to sell dollars to the BDCs at a fixed rate of N384 to the dollar while they are expected to sell to their customers at N386.
Gwadabe noted that the BDC operators would find it difficult to break even.
“The challenge that we are facing is the smaller margin.
“Right now, the parallel market is doing about N430 and our pegged rate is N386 to the dollar.
“So, we still see a gap between the advised exchange rate of N386 by the CBN and what is obtainable presently in the market.
“We are asking the CBN to please look at this and review it for us.”
Gwadabe also urged the CBN to allow for the use of virtual documentation which he said would help in curbing the spread of the COVID-19 pandemic, saying COVID-19 is still very much around.
“That is what we are also requesting as part of measure to curb the spread of Covid-19.”
He warned members to always operate in accordance with the rules and guidelines of the business.
“Do not sell foreign exchange to unauthorized persons. Our members, in the past, have been sanctioned for selling to unauthorized buyers.”