By Murtala Adewale, Kano
Bureau De Change (BDC) operators in Kano State have appealed to the Central Bank of Nigeria (CBN) to incorporate their members into Basic Traveling Allowance (BTA) and other foreign exchange (FX) transactions.
They, however, applauded the Federal Government’s monetary policy on unification of FX rates in the country and removal of restriction on domiciliary accounts.
Addressing journalists, yesterday, in Kano, Chairman of Al’amanat Association BDC Operators, WAPA Market, Sani Dada, explained that enabling BDCs to join the competitive market with Deposit Money Banks (DMBs) in forex trading would reduce the cumbersome procedures DMBs usually subject customers to before issuance of FX.
CBN recently lifted ban on cash deposits into domiciliary accounts, thereby enabling customers unfettered access to funds in their accounts.
The new policy, the apex bank said, would discourage speculation, enhance customer confidence and ensure overall stability in the FX market.
Dada noted that, over the years, commercial banks had created needless barriers with introduction of policies not known to the CBN in FX transactions, thereby making the process difficult.
The BDC expert, however, disclosed that CBN would further ensure transparency and accountability by breaking the monopoly of commercial banks and liberalising the disbursement of BTA, Personal Travel Allowance (PTA) and other forex remittances.
The CBN recently explained its aim to promote transparency, liquidity and price discovery in the FX market to improve FX supply with the changes in its policy.
It stated in the new policy: “DMBs shall ensure expeditious processing of all eligible invisible transactions on behalf of their customers, using the applicable rate at the Importers and exporters (I&E) window.
“Ordinary domiciliary account holders shall have unrestricted access to funds in their accounts. Domiciliary account holders are permitted to utilise cash deposits not exceeding $10,000 daily or its equivalent via telegraphic transfer.
“DMBs shall provide returns to the CBN, including the purpose for such transactions. Cash deposits into domiciliary accounts will not be restricted, subject to DMBs conducting proper KYC (Know Your Customer), due diligence and adhering to the spirit and letter of extant anti-money laundering/combating the financing of terrorism laws and other relevant rules and regulations.”
Source: The Guardian