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BVN: BDCs now comply with Forex limits

By on November 11, 2015

The implementation of the use of the Bank Verification Number (BVN) as a requisite for the purchase of foreign currency from the Bureau De Change (BDC) segment of the market may have compelled the operators to comply with the earlier directive on the maximum amount, which they could sell to low forex end users for travel allowances, medicals, school fees etc.

A report on Monday indicated that most BDC operators are now left with large volume of unsold dollar cash, most of which they bought from the Central Bank of Nigeria(CBN) official window.

It was gathered that the operators are blaming the BVN requirement as mainly responsible for their inability to sell.
Their assertion was that customers now shun the BDCs and in its stead, patronise the parallel market, which pushed the rate at the parallel market to above N225 as at last week.
When contacted, the Director, Corporate Communications, CBN, Mallam Ibrahim Mu’azu discountenanced the assertion that introduction of the BVN as a requirement for the sale of foreign exchange was responsible for the low patronage.

He described such assertion “as just a ploy to arm-twist or blackmail the CBN into reversing the directive on BVN requirement.”

Mu’azu further noted that BDCs were licensed to service the low end users whose demand fall between $4,000 and $5,000 (and below) as Basic Travel Allowance (BTA) or Personal Travel Allowance (PTA) as the case may be.

“However, the BDC operators have engaged in bulk sales of foreign currency over the years to those who carry the foreign currencies across the borders. Hence the introduction of the BVN as a mandatory requirement for purchasing foreign currencies from the BDCs has checked that flagrant disobedience of regulations guiding of their operations, ” he said.

Speaking further, the Mu’azu noted that those with legitimate demand for foreign exchange need not fear as the BVN requirement is to facilitate the enforcement of authorised limits of sales and spread to end users and reduce the incidence of multiple purchases, round tripping and illicit transfer of funds.

In practice, travellers who need to buy the forex submit more personal information like bank statements, international passport details and other personal information to the embassies, travel agents and airlines on demand without of compromise while the BVN is just a number which ordinarily the BDCs cannot access their personal information.

 

[ThisDay]

  • murktar1

    If Nigeria wants to collect foreign currency why not close the black markets. Why are these politicians and Banks not brought down to the reality that black markets like bureseau De exchange are not tollrrated in other countries. On the other hand, The Nigr Treasury must creat a better monetary policy for the Weak and non demanded Naira because no Nigeria goods are in international market for the naira demands. The point here is simply the Nigeria Government cannot have it both ways or else manufacturing deficiency will turn the country to a failed state. As a consumer economy, the pasty policicies of ignorance unpatriotic, greed and currupt mostly Nigeria Educated mostly products of I’ll baked academics have come to bite Nigeria. Shame of a Nation must be acknowledge especially in engineering, manufacturing and technology. The universities have been under utilized due to epilipsy education. Misguided and ethnicity factors anchoring around religion and regions are the factors bthat will collapse the economy.

    • Nkolo

      Murktar, some quick corrections (1) bureau de change are not black marketer of Forex, they are licensed by the government to deal in Forex transactions in small volume of max $4,000 (PTA) , $5000 (BTA) . (2) Black marketers are mainly the mallams on the streets but also includes anybody, individual or organization that is not licensed by government to trade in Forex. It is difficult to totally eliminate black market of any commodity that is in high demand like USD, Petroleum products, military hard-wares/weapons etc especially when the government fails to fill in the gap of demand of such commodity to the consumers . yes ! Nigeria’s demand for dollar is mainly because we are an import oriented country, since the oyinbo man will not collect our Naira to sell to us , we must get his dollar to buy from him because that the only money he recognizes . Bureau de change have help to overall fill the gap in demand for USD and at the same time reduce the difference in official rate and black market rate, for instance, CBN official rate is 197 while the black market rate is now about 246 since the introduction of BVN which has been a challenge for BDC operators because CBN and every Banks were telling people ” dont give ur BVN number out to anybody” now they reverse their word and say ” its okay, give it out “. The public is confused ! instead of BDCs they run to black market that will not ask for BVN and Dollar rate starts to rise in black market due to High demand in the sector. its that simple ! The CBN governor must realize that the black market has a strong influence on the economy, on domestic trade and as such you must learn to control it by reducing patronage to it .