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BDCs operators waiting for dollar cash disbursent

CBN sells $51.8 mln to BDCs as it appoints more consultants to conduct process

By on September 7, 2020 0 196 Views

By Oludare Mayowa

The Central Bank of Nigeria (CBN) on Monday set to disburse about $51.80 million to bureau de change operators in five centres across the country, using the services of consultants to conduct the process.

There are about 5,180 members of the Bureau de Change Association of Nigeria (ABCON), who have conducted biometric process ahead of Monday sales of $10,000 per outlet at the fives centres across the country, according to the president of the association, Aminu Gwadabe.

The regulatory bank appointed additional consultants to help smoothen the process of dollar sales to the retail outlets in Lagos, Abuja, Kano, Port Harcourt and Awka.

The consultants are CFS Services Limited to conduct the dollar cash distributions to BDCs in the Lagos area, while Innovate 1 Limited will conduct the process in Abuja.

The bank last week announced the appointment of Mohalkos International Limited to conduct the disbursement of dollar to bureau de change operators in the Kano area.

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The CBN has enlisted the services of more consultants to conduct the dollar cash sales to bureau de change outlets in Awka, Anambra state, which will now be carried out by Amanda Limited, while Travelex Limited will conduct the disbursement in Port Harcourt.

Already, about 5,180 bureaus de change operators are waiting in the offices of the CBN in the five Zones, except the Port Harcourt area, which is yet to take off, to collect their dollar allocations from the CBN, more than five months after the regulatory bank suspended sales to them.

Abcon President, Gwadabe said the stage is set for the disbursement of dollars to the association members and hope the resumption of dollar sales by the CBN will help strengthen the local currency and stabilise the market.

Nigerian naira has depreciated sharply against other currencies after the suspension of dollar sales by the CBN to BDCs and banks in the wake of the outbreak of the coronavirus pandemic.

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The CBN had devalued the local currency twice this year, in its bid to curtail pressure on its foreign exchange reserves and also achieve the convergence of rates at all the market segments.

The naira opened at the parallel market on Tuesday at N440 to the dollar, the same rate it closed on Friday as market anticipate the ongoing process of dollar disbursment to BDCs.

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