To bring you the best content on our sites and applications, Meredith partners with third party advertisers to serve digital ads, including personalized digital ads. Those advertisers use tracking technologies to collect information about your activity on our sites and applications and across the Internet and your other apps forex ceo magazine devices. N360 to N350 to the dollar— in the interest of the economy and operators. President Aminu Gwadabe, who spoke yesterday after an emergency meeting with 3,500 CBN-licensed BDCs in Lagos, said the operators’ businesses may go underground unless the CBN listens to their demands.
He said small transaction margins charged by BDCs are not sufficient to keep their operations going, with many operators running at a loss and unable to pay their workers’ salaries. Gwadabe, who was represented by ABCON National Treasurer, Gbadamosi Moh-Murtala, said the CBN has also been informed on the need to change the commission on transaction of BDCs from N2 to 3. 5 per cent of the transaction volume for the sustainability of their businesses. We are happy that the exchange rate is appreciating. The major problem now is how BDCs can operate without making losses.
Many of the BDCs are buying at higher prices and selling lower prices. They sometimes sell below CBN’s rate which is N360 to dollar. According to the ABCON boss, the CBN should at the meantime, peg the BDCs buying rate at N358 to dollar to enable them sell at N360 to dollar while it works on longer-term plan of cutting the rate to N350 to dollar and allow them sell at N355 to dollar. BDCs following the rate disparity that does not favour the BDCs.
He added that the CBN could also, sell dollar to BDCs at same rate it sells to banks, since both sell to the same customers. Even the CBN knows that we are making losses. We are currently out of the market but we have decided not to boycott the market despite the challenges we face. Gwadabe said the BDCs helped the government reduce unemployment rate, adding that any policy that pushes the BDCs out of the market will worsen the unemployment rate in the economy.