BDCs want forex profit margin reviewed | Dailytrust

BDCs want forex profit margin reviewed

Association of Bureau De Change Operators of Nigeria (ABCON)
Association of Bureau De Change Operators of Nigeria (ABCON)

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.

CBN tasks bureau de change operators on money laundering, terrorism

Inflation: CBN reviews interests on savings deposit

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.”

Dear Reader,
Every day, we work hard to provide readers such as you with the most accurate, up-to-date, and comprehensive information. Quality journalism costs money. Today, we're asking that you support us to do more. Your support means that Daily Trust can keep offering journalism to everyone in the world. Sign up for as little as N1,000 to become a member. Learn more about our membership here

Bank transfers can be made to:
Zenith Bank
Media Trust Ltd

Please send details of your bank transfer to the email or Whatsapp number below so that we can contact you.

If you have any questions, please let us know.

Whatsapp: +234 806 990 3410