The nation’s currency, the naira on Monday depreciated further by N7.00k or 2.71 percent against the US dollar at the Bureau De Change (BDC) segment of the foreign exchange market, due to supply shortage.
BusinessDay learnt that the Central Bank of Nigeria (CBN) has denied over 60 percent or over 1,600 BDC operators access to foreign exchange due to late or non-rendition of returns.
Consequently, the naira closed at N265.00k/$ compared to N258.00k/$ traded last week Friday at the BDC segment.
“We are engaging with the CBN to allow more BDCs participate in this week’s trading, so as to reduce the tension in the market currently”, Aminu Gwadabe, acting president of Association of Bureau De Change Operators of Nigeria (ABCON) told BusinessDay by phone, adding that the CBN said it would look into it.
Commenting on the revised operational guidelines for BDCs released by the CBN, he said it has given hope to the operators that they would continue to do business.
The revised guidelines which take effect, January 1, 2016 require BDCs to pay a minimum paid-up share capital of N35 million, non-refundable application fee of N100,000, non-refundable licensing fee of N1 million, mandatory caution deposit of N35 million, non-refundable annual licensing renewal fee, payable not later than 30 days after the end of each calendar year, of N 250,000 and non-refundable change of name fee of N100,000.
Gwadabe was worried about the branch closure and the penalty stated in the guidelines, which he said is too much for a BDC operator. Part of the penalty as contained in the guideline is a fine of N2,000,000 and three months suspension for change in ownership, take over or amalgamation without CBN approval.
However, the local currency gained against dollar by N1.61k or 0.81 percent at the inter-bank foreign exchange market, as it closed at N197.49k/$ as against N199.10k/$ on Friday last week, data from FMDQ has revealed. The CBN’s clearing rate remained stable at N197.00k/$.
HOPE MOSES-ASHIKE
