Godwin Emefiele, CBN governor, had announced a new foreign exchange policy, part of which included the stoppage of weekly dollar sales to BDCs.


Naira Freefall
BDCs to sack 30,000 workers, blames forex drought, CBN policy

Folarin Okunola | 09:05 | 03.02.2016
Godwin Emefiele, CBN governor, had announced a new foreign exchange policy, part of which included the stoppage of weekly dollar sales to BDCs.

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» more Governor Godwin Emefiele announces that Nigeria's central bank is keeping its benchmark interest rate on hold at 13 percent in Abuja, Nigeria, July 24, 2015. REUTERS/Afolabi Sotunde
According to various media reports, Alhaji Aminu Gwadabe, president, Association of Bureau De Change Operators of Nigeria (ABCON), yesterday said that some 30,000 Bureaux De Change (BDC) workers would be sacked within the first quarter of this year.

Gwadabe stated that the move is a direct result of the continued loss of business by operators after the Central Bank of Nigeria’s (CBN) stoppage of weekly dollar sales to the body.

The ABCON boss listed workers to be affected as including directors, auditors, operations managers and compliance officers, as well as chief executives.

Godwin Emefiele, CBN governor, had announced a new foreign exchange policy, part of which included the stoppage of weekly dollar sales to BDCs. 

“Operators in this segment of the market would now need to source their foreign exchange from autonomous sources. They must however, note that the CBN would deploy more resources to monitoring these sources to ensure that no operator is in violation of our anti-money laundering laws,” Emefiele said.

However, Gwadabe doesn’t agree with the CBN governor, saying: “As law abiding citizens and partners in progress with the CBN, we respect the decision of the apex bank as the regulator of the banking industry and foreign exchange market where we operate. While we are not totally surprised by the decision, we, however, believe there are better ways of addressing the challenges in the foreign exchange market.”

READ: Apex bank, forex officers to meet over Naira freefall

“Suffice to mention that before the CBN started selling dollars to BDCs in 2006, there were about 270 BDCs in the country. Despite the harsh operating environment, these operators were able to survive by servicing their clients. Secondly, the BDC industry was created by the CBN to fill a critical gap in the retail segment of the foreign exchange market. Furthermore, the decision to sell dollars to BDCs was in recognition of the role of BDCs to counter the effect of the illegal currency traffickers and the continued depreciation of the naira in the parallel market,” he said, expressing his regret that BDCs were always blamed whenever there was naira volatility.

“Thus, contrary to the impression created by the CBN, BDCs are not the problem of the foreign exchange market, rather they are solutions to deep rooted problems in the market namely activities of illegal foreign exchange operators and the wide gap between the official and parallel market exchange rates. And they have performed creditably well in these regards. While there are over 3000 licensed BDCs, how many of them does the CBN sell dollars to on a weekly basis?” he asked.

“In the last one month, the CBN has been rationing dollar sales to BDCs, with less than half accessing the dollar windows.  The Governor should have stated how much dollars the CBN actually sold to BDCs on an annual basis rather than estimating how much is been sold. For example, in 2014, according to the quarterly economic reports of the CBN, the CBN sold $4.4 billion to BDCs while it sold $43.65 billion to banks through the Retail Dutch Auction. This reveals that out of the $48.09 billion sold by the CBN, less than 10 per cent was sold to BDCs,” Gwadabe added.

Gwadabe further stated that the decision of the CBN to stop dollar sales to BDCs has grave implications for the economy.

CBN Governor, Emefiele, had directed the CBN to stop selling dollars to BDCs as part of his efforts to stem the freefall of the Naira which has been trading averagely at about N305 to the dollar on the parallel market for the past few days.
Folarin Okunola
is an Associate at Pulse.
An avid reader and cook, Okunola considers himself open-minded, critical and adventurous. He also believes the society is not always right and considers the human mind more powerful than a bottle of Coke. Follow him on Twitter: @Fxlvrin
         


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PULSE MONEY


Source:

http://pulse.ng/money/naira-freefall-bdcs-to-sack-30-000-workers-blames-forex-drought-cbn-policy-id4639716.html

They will bounce back when we have good foreign reserve .

It is a temporary challenge

Blame it on GEJ that couldn't manage surplus

Where did the BDCs get the 30,000 workers that they want to sack?? These guys should stop all these exaggerations, abeg. Is it the mallams at the market and airports that will lose their jobs, or those bank chiefs that sell forex to them using underhand means??

Dullard buhari takg away food on tables of many ng families n sendg many more 2 overblown labor mrkt.

Tequilah:
Where did the BDCs get the 30,000 workers that they want to sack?? These guys should stop all these exaggerations, abeg. Is it the mallams at the market and airports that will lose their jobs, or those bank chiefs that sell forex to them using underhand means??

Did you read the article?

excellentmomma:
Did you read the article?

Yes, o. Wasn't it inside there that I saw this statement highlighted in bold?? According to various media reports, Alhaji Aminu Gwadabe, president, Association of Bureau De Change Operators of Nigeria (ABCON), yesterday said that some 30,000 Bureaux De Change (BDC) workers would be sacked within the first quarter of this year.

excellentmomma:
Godwin Emefiele, CBN governor, had announced a new foreign exchange policy, part of which included the stoppage of weekly dollar sales to BDCs.
Naira Freefall
BDCs to sack 30,000 workers, blames forex drought, CBN policy
Folarin Okunola | 09:05 | 03.02.2016
Godwin Emefiele, CBN governor, had announced a new foreign exchange policy, part of which included the stoppage of weekly dollar sales to BDCs.
24/7 Live - Subscribe to the Pulse Newsletter!
Subscribe
» more Governor Godwin Emefiele announces that Nigeria's central bank is keeping its benchmark interest rate on hold at 13 percent in Abuja, Nigeria, July 24, 2015. REUTERS/Afolabi Sotunde
According to various media reports, Alhaji Aminu Gwadabe, president, Association of Bureau De Change Operators of Nigeria (ABCON), yesterday said that some 30,000 Bureaux De Change (BDC) workers would be sacked within the first quarter of this year.
Gwadabe stated that the move is a direct result of the continued loss of business by operators after the Central Bank of Nigeria’s (CBN) stoppage of weekly dollar sales to the body.
The ABCON boss listed workers to be affected as including directors, auditors, operations managers and compliance officers, as well as chief executives.

Source:
http://pulse.ng/money/naira-freefall-bdcs-to-sack-30-000-workers-blames-forex-drought-cbn-policy-id4639716.html

Tequilah:


Yes, o. Wasn't it inside there that I saw this statement highlighted in bold?? According to various media reports, Alhaji Aminu Gwadabe, president, Association of Bureau De Change Operators of Nigeria (ABCON), yesterday said that some 30,000 Bureaux De Change (BDC) workers would be sacked within the first quarter of this year.

And why did you leave out this part you also highlighted.

The ABCON boss listed workers to be affected as including directors, auditors, operations managers and compliance officers, as well as chief executives.

excellentmomma:
And why did you leave out this part you also highlighted.

The ABCON boss listed workers to be affected as including directors, auditors, operations managers and compliance officers, as well as chief executives.

They are all part of the scenario. Have you conducted a census? How many BDCs have auditors, operations managers and compliance officers even if they have chief executives? If you add them all up, I doubt if they would number 30,000. We like throwing numbers around, without supporting evidence or proof, in this country. They conveniently didn't highlight the mallams who in fact are the greater majority of BDC operators, and they ignored the bank managers who often throw slush funds their way.

Tequilah:


They are all part of the scenario. Have you conducted a census? How many BDCs have auditors, operations managers and compliance officers even if they have chief executives? If you add them all up, I doubt if they would number 30,000. We like throwing numbers around, without supporting evidence or proof, in this country. They conveniently didn't highlight the mallams who in fact are the greater majority of BDC operators, and they ignored the bank managers who often throw slush funds their way.

FYI,

There are about 3,000 BDCs

Each BDC by law has a minimum of 3 directors, some have more, especially during the last recapitalization of July 2014, people pulled resources together. Then they all must have an Encasher with Biometrics with CBN, you must have a back up in your own interest for any unforseen event.
Then do you know the myriads of reports they do daily, weekly etc, who does that and if there is an inspection by regulators who liases with them?

Stop confusing licensed BDCs with black market street traders.

And yes they all have, Auditors, bankers and solicitors because it's a regulated business.
So an estimated 10 people are tied to one BDC, Abcon chairman is right in his assertion.
Thanks

excellentmomma:
FYI,

There are about 3,000 BDCs

Each BDC by law has a minimum of 3 directors, some have more, especially during the last recapitalization of July 2014, people pulled resources together. Then they all must have an Encasher with Biometrics with CBN, you must have a back up in your own interest for any unforseen event.
Then do you know the myriads of reports they do daily, weekly etc, who does that and if there is an inspection by regulators who liases with them?

Stop confusing licensed BDCs with black market street traders.

And yes they all have, Auditors, bankers and solicitors because it's a regulated business.
So an estimated 10 people are tied to one BDC, Abcon chairman is right in his assertion.
Thanks

3,000 BDCs?? Where? Provide the source, please. And kindly confirm how many of them are fully operational, and how many actually have this full set of staff you have described here!

Tequilah:


3,000 BDCs?? Where? Provide the source, please. And kindly confirm how many of them are fully operational, and how many actually have this full set of staff you have described here!

You are a village boy and very ignorant,

Please visit cbn website and check number of licensed BDCs, and update yourself b4 you quote me again, do you think owning and running one is a child's play?. Banks own BDCs too, in their names, get informed please

I don't trust any news from pulse.ng

excellentmomma:
You are a village boy and very ignorant,

Please visit cbn website and check number of licensed BDCs, and update yourself b4 you quote me again, do you think owning and running one is a child's play?. Banks own BDCs too, in their names, get informed please

Why this matter dey pain you like this? And why the name-calling? Do you own a BDC? Oya, provide the url link to the CBN website where you saw the list of BDC's so we can read and verify. Also let us know how many on that list have folded up and the number of those that are fully operational. The ball is in your court!

Tequilah:


Why this matter dey pain you like this? And why the name-calling? Do you own a BDC? Oya, provide the url link to the CBN website where you saw the list of BDC's so we can read and verify. Also let us know how many on that list have folded up and the number of those that are fully operational. The ball is in your court!

Google is your friend

excellentmomma:
Google is your friend

Haba!! Why you come dey fall my hand like dis, nah?? Na you talk say the list dey CBN website. Oya, post am now...you come dey change gear, dey sing "Google is your friend." Nothing wey person no go see for here....

Tequilah:


Haba!! Why you come dey fall my hand like dis, nah?? Na you talk say the list dey CBN website. Oya, post am now...you come dey change gear, dey sing "Google is your friend." Nothing wey person no go see for here....

If you are educated you will know how to navigate from Google to the link you want, thank you

excellentmomma:
If you are educated you will know how to navigate from Google to the link you want, thank you

Hehehe...just admit the link does not exist, and have the grace to confess you erred!