CBN Refunds N17.5bn Cautionary Deposit To 500 BDCs

Bukola Idowu

— Feb 22, 2016 3:21 am | Leave a comment

The Central Bank of Nigeria has refunded no less than N17.5 billion to Bureau De Change operators in the country who have so far come forward for their N35 million mandatory cautionary deposit.

LEADERSHIP findings have revealed that about 500 BDCs have received the sum from the apex bank.

The CBN had told BDCs to request for a refund of the N35 million cautionary deposit after it stopped selling foreign exchange to them early in January. Many BDCs had immediately applied for the refund.

Acting president of the Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe told Leadership in a phone interview that up to 500 members of the association had received the refund from the apex bank.

The refund had been made with a three per cent interest paid on the deposit in line with the bi-annual interest that is being paid by the apex bank to the BDC, the last of which was paid in July last year.

Meanwhile, the money changers association say they are poised to transform to compete within the global currency market to increase dollar liquidity in the market.

A statement by the association noted that the association is set to review and update its operators’ manual, create live trading platforms and automate transactions documentation requirements to be real-time online.

This is as the BDC operators are targeting the annual $21 billion average forex inflow from Nigerians in Diaspora for their continued operations, in a heavy demand market.

The World Bank Migration and Remittances Factbook 2016 showed that Nigerians living abroad sent home $20.8 billion in 2015. The figure is by far the largest volume of remittances to any country in Africa and the sixth largest in the world.

The President, Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, said the body has already made a proposition to the Central Bank of Nigeria (CBN) to allow its over 3,000 members operate correspondence bank account.

The accounts, he said, would allow the BDCs receive over $21 billion annual Diaspora remittances and also allowed to operate like money transfer agents.

He said the CBN is currently reviewing a proposal from the ABCON and is confident of getting positive feedback because of the need to raise the dollar liquidity position in the market which will also boost naira stability.