IMC experts laud CBN’s ban of forex sale to BDC operators
By Oghale Mafuru
Following the Central Bank of Nigeria’s (CBN’s) decision to cancel the sales of forex to the Bureau De Change (BDCs) operators, experts in the Integrated Marketing Communications industry have lauded the decision of the apex bank amidst calls for full implementation.
The CBN made the decision at the recent Monetary Policy Committee (MPC) meeting held in Abuja.
The CBN Governor, Godwin Emefiele, who accused the BDCs operators of multiple BDC ownership and facilitating corruption in the country, disclosed that the apex bank would henceforth channel weekly allocations of dollar sales to commercial banks to meet legitimate foreign exchange demands, adding that processing of application for new BDC licenses has also been suspended.
The CBN boss, who said the commercial banks would be monitored to provide forex for the legitimate use of Nigerians, decried with great concern the activities of the BDCs that are at variance with its purpose of existence, which is to provide forex to retail users.
Speaking on the impact of the policy on the economy and businesses, Economic Analyst, Aliogo Ugo said: “The CBN is trying to regulate the little we have to ensure that those who actually need forex are given forex. There are big corporations that are into imports, they are the ones that buy big machines, do huge investments, foreign trade and a lot of activities. So, they can buy directly from the CBN. So, it will help a lot to mop up the little we have in circulation. We do not have enough and then our naira is not competing. The Nigerian currency has nosedived. The move will make sure the little we have is in the coffers of CBN. Businesses that engage in trans-border trade will greatly benefit.”
On his part, Business Consultant, Endurance Akakpo said the new policy of the CBN will help to curb the fraudulent activities of the operators as it will ensure that legitimate users of forex get it at the CBN approved rates.
He said: “There is no black market for foreign currency. What these people do is that, they tell you they have subsidized rates for importers and exporters, some people who are not into export and import purchase the dollars at subsidized rates from the CBN and then resell to other genuine businessmen at increased rates. It is an act of corruption that I believe this policy will eradicate. More so, Small scale businesses will be sure to have access to foreign change at the CBN approved rates.”
For Mr. Akakpo, the policy is a welcome development as it has a huge prospect of facilitating increased international trade activities and growth for the Nigerian economy.
While commending the CBN for the new policy, Enakpoke Theophilus, Managing Director, G. Angel Concepts called on the regulatory agency to ensure strict adherence to the policy by monitoring its implementation.
Iin his words: “Personally, I am not a fan of the black market, but it is the hope of an average business person in Nigeria. The reason is that the CBN has made it very difficult for people that need dollars to do business to have access to it. This is because of the bottlenecks that are involved. When you cannot access the dollar, you resort to the black market. And it is not helping businesses because of the high exchange rate to the dollar.
He added: “Now that CBN is coming up with a policy to issue dollars directly through the commercial banks, it will be a good development if the CBN will be sincere by making the dollar available to people that actually need them.”
Mr. Theophilus noted that beyond coming up with policies, the apex bank should ensure that they are implemented because feedback from such implementation can provide valuable information that will be vital in making decisions whether to have the policy retained, improved or scrapped.
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