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CBN orders BDCs to source dollars from First Bank, Travelex

There are strong indications that the Central Bank of Nigeria, CBN, may have given a new directive on how Bureaux de Change operators should source dollar proceeds from International Money Transfer Services, IMTS.

Unconfirmed reports yesterday indicated that the apex bank had, as an interim measure, authorised only First Bank of Nigeria, FBN Limited, and Travelex, to supply foreign exchange (forex) to major DBCs until other operators would strengthen their operations before qualifying for IMTS’ dollar proceeds.

Although there were no official explanations from the apex bank when National Mirror contacted the Acting Director, Corporate Communications, Mr. Isaac Okorafor, who was said to be at a meeting with the CBN Governor, our correspondents’ findings indicated that the choice of First Bank was predicated on its prolonged involvement in IMTS.

When contacted, most officials of the Deposit Money Banks, DMBs, feigned ignorance of the new policy measure but National President, Association of Bureau De Change operators in Nigeria, Mallam Aminu Gwadabe, gave an insight into the new directive.

According to him, while other DMBs were not out-rightly banned from sale of forex to BDCs, the idea of asking First Bank and Travelex to start dealing with BDCs through sale of dollar proceeds was because some of the BDCs lacked the requisite operational structures and system to engage in IMTS’ dollar sales.

It would be recalled that some weeks ago, the CBN had directed banks to sell proceeds of their international money transfer services to BDCs, in a bid to address the steady and sharp depreciation of the naira in the parallel market.

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