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CBN, BDCs agree on BVN use for forex

By on November 18, 2015

The President, Association of Bureau De Change Operators of Nigeria, Alhaji Aminu Gwadabe, says the BDCs are not opposed to the recent introduction of the Bank Verification Number as a requirement for foreign exchange transaction by the Central Bank of Nigeria.

He said members of the association were totally in support of the policy, adding that it would enhance stability in the foreign exchange market and by extension the BDCs’ business.

Gwadabe, however, said there was the need for the CBN to address some salient issues that might affect the smooth transition of the BDCs into the new regulatory regime in the forex market.

He listed these as capacity building for the BDCs and massive public enlightenment campaign among others.

He said, “It is pertinent to reiterate that ABCON and its members are not against the use of the BVN as a criterion for foreign exchange transactions. Our point of divergent with the CBN is the need for massive publicity to ensure awareness of the policy.

“Though the policy applies to both banks and the BDCs, the reality is that, an individual would willingly supply his or her BVN to a bank, and be reluctant to do so to a BDC, except, he has been adequately informed that it is a CBN policy.”

The ABCON boss recalled that a few days to the October 31 deadline set for the BVN enrolment, fraudsters had started circulating text messages using the BVN to lure unsuspecting people to divulge their account details.

This, he said, created an atmosphere of fear that forced many prospective buyers to patronise the black market for their forex needs.

He said, “In the first week of November, when the BDCs started asking customers for the BVN, most of them declined, and decided to visit the black market for patronage. The result was increased demand in the black market, sharp depreciation of the naira in the black market, which widened the gap between the interbank rate and the black market rate. This would not have been the case, if the policy had been preceded by massive publicity over a period of about six months.

“This becomes more glaring when you compare the amount of publicity for the cashless policy, and publicity for the BVN enrolment to the publicity for the use of the BVN for forex transactions. Beside the circular issued by the CBN, there was no publicity, until a week into the policy when the CBN issued advertorial in some national papers.”

Meanwhile, Gwadabe said it had become necessary to bring to the attention of the public and the Federal Government the “antics of Travelex Nigeria to discredit the BDC operators in the country.”

He alleged that although licensed as a wholesale supplier of forex and importer of forex into the country, Travelex was currently scheming to take over the retail segment of the foreign exchange market through its position.

It also accused the company of trying to portray other operators as working against the CBN especially in the use of Bank Verification Number for forex transactions.

According to him, there is the need to call Travelex to order and investigate its activities in the Nigerian market.
[Punch]