Operators of Bureaux De Change (BDC) in Nigeria have forcasted annual forex inflow of $21 billion averagely from Nigerians in Diaspora for their continued operations.

This target is feasible as 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.

The proposal, he added, would enable BDC operators open forex account with Bank of America or Barclays Bank or any other international lender. The accounts, he said, would allow Nigerians living abroad send funds to their relatives or Nigerian counterparts through the foreign banks. The local BDCs will credit the recipients with the naira equivalents of the dollar credited to their accounts with the foreign banks.

This practice, when approved, he said would not only boost dollar liquidity in the market, but helps the country navigate through raging currency risks.

The ABCON boss said: “It is a proposal before the CBN because we want to help it expand the dollar supply side and make the market more liquid. We want the BDCs to be agents of Western Union and be involved in Diaspora remittances”.

The CBN had earlier entered an agreement with BDC operators on ways to bridge dollar liquidity crisis in the sector.

Gwadabe said the regulator has agreed to source petrodollars from international oil companies (IOCs) and other autonomous sources.

A closed door meeting between the BDCs management and CBN Governor, Godwin Emefiele, concluded yesterday evening, was meant to find ways out of the dollar crisis in the sector, promising to directly intervene in selling dollars to the BDCs when market liquidity improves.

Gwadabe said: “The CBN agreed to be sourcing for dollar from IOCs and selling to the BDCs between 198 and 201 to a dollar. We have also accepted to ensure that our members follow the regulatory guidelines and not sell dollars obtained through the autonomous sources over the required margin”.
Source: The Nation