CBN goes hard on BDC operators, issues various fines

The Central Bank of Nigeria (CBN) is coming hard on Bureau De Change (BDC) operators over various infractions in the foreign exchange market. Over 100 BDC operators were fined N5 million each for various infractions in the foreign exchange market.

This was disclosed by the President of Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadebe during his conversation with the media after a meeting with the apex bank. He said that the apex bank contemplated revoking the licenses of some BDC operators over various offences before ending up applying fines on some of them.

Foreign exchange market

Gwadebe said that the crash in crude oil prices had made a lot of foreign portfolio investors to dump their assets and this has led to speculation from operators in the foreign exchange market.

In his statement, Gwadebe said, “With the fall in crude oil prices, we witnessed a lot of foreign portfolio investors dropping their assets most especially to convert to cash.

‘The movement was a result of recklessness on the side of the operators when they want to speculate, but there is no reason for such because the Central Bank of Nigeria had continued to maintain support for liquidity to the BDC sub-sector.”

The ABCON President pointed out that the speculation in the foreign exchange market as a result of the crash of crude oil prices is not necessary. The speculation played a big part in the instability in the market with the one dollar going for as high as N400 although he said sanity was gradually returning to the sector as the dollar was sold for N375 by the close of business yesterday.

Gwadebe further said that in their meeting with CBN on Thursday, the apex bank issued a serious warning to the BDC operators against contravening laid down rules and laws in the foreign exchange market.

In an earlier report by Nairametrics, the CBN had expressed its displeasure at the speculative activities of unscrupulous players in the foreign exchange market, which was borne out of the impression that the regulator was planning to devalue the Naira.

CBN had said that these rumours are false, unwarranted and calculated to serve their dubious and selfish motives and the apex bank does not have such plans as the market fundamentals do not support Naira devaluation.

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