• CBN begins sale of dollars to approved BDCs 
Despite the demolition, yesterday by the Federal Capital Development Authority (FCDA) of buildings, shops and shanties housing Bureau De Change (BDC) operators in the latter’s Wuse Zone 4 headquarters, agents were still seeing around the premises shopping for customers.

The demolition witnessed the presence of a Joint Task Force (JTF), comprising the Nigeria Police Force (NPF), Vehicle Inspection Officers (VIO) and Civil Defence officials among others.

The exercise, which started at about 9:00am, saw BDC operators struggling to salvage their belongings, as most of them claimed that they were not pre-informed.

Immediately after the demolition at about 2:00pm, the operators resurfaced to continue their businesses amid presence of few security agents stationed within the premises to frustrate trading.

Recall that operatives of the Economic and Financial Crime Commission (EFCC), two weeks ago, raided and arrested over 50 illegal BDC operators in the same area.

According to the traders, the raid was occasioned by the continued free fall of the Naira at the foreign exchange market.

An operator, Dayyabu Mistila, confirmed this to reporters in Abuja.

He said: “Around 3:00pm on Monday, officers of the EFCC raided Wuse Zone 4 and arrested over 50 of our members. They were complaining that BDC operators are responsible for the rising exchange rate of the dollar at the parallel exchange market.”

BESIDES the Federal Capital Territory Administration (FCTA) has warned the operators that they cannot carry out their businesses under trees.

Leader of the City Management Team and Director, Department of Development Control, Mukhtar Galadima, said the shanties serve as hideouts for suspected criminals in the area.

Describing the neighbourhood as an eyesore, Galadima said security reports emanating from there were damning.

His words: “Our cleanup here is based on directive for us to keep sanity. The place is in a sorry situation in terms of aesthetics. It serves as hideouts for criminals and miscreants, which is why we have to come to clear everything.

“BDC operators are expected to operate from designated and licensed areas. They are not supposed to operate under trees and in bushes. So, that is why we have to clear the place.”

MEANWHILE, the Central Bank of Nigeria (CBN) has resumed sale of dollars to chosen Bureaux de Change (BDCs) in its bid to achieve stability at the exchange market.

Defending the disbursement to approved BDCs, the apex bank said the move follows the continued price distortions at the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium.

The sum of $20,000 is to be sold to each BDC at the rate of N1,301/$ – representing the lower band rate of executed spot transactions at NAFEM for the previous trading day (as of today, February 27, 2024).

All BDCs are allowed to sell to end-users at a margin not more than one per cent above the purchase rate from CBN.

The financial institution said all eligible BDCs are directed to make the Naira payment to the designated CBN Foreign Currency Deposit Naira Accounts and submit confirmation of payment, with other necessary documentation, for disbursement at the appropriate CBN branches in Abuja, Kano and Awka.

According to the accompanying guidelines, “all BDCs allocated foreign exchange shall keep records of beneficiaries and the amount sold to each beneficiary.

“Also, BDCs shall not sell more than $4,000 per individual for PTA and $5,000 for BTA and all BDCs allocated foreign exchange shall not re-sell at more than one per cent spread to end users.”

The rules continued: “All BDCs shall display their buying and selling rate at their outlet. All BDC transactions shall be conducted in designated approved BDC office/outlet addresses. Street hawking is strictly prohibited. All BDC-allocated Foreign Exchange shall make a daily rendition of the sale of Foreign Exchange to the end-user before 10am the next business day on the Financial Institutions Foreign Exchange Reporting System (FIFX) portal.

“The CBN Examination team shall periodically conduct an on-the-spot examination of Foreign Exchange disbursements by BDCs. BDCs are expected to maintain a high level of professionalism and transparency in the conduct of their business in line with stipulated guidelines. Any breach shall attract immediate revocation of the BDC licence.”