Top Main Categories

  Builders   (29534 Hits)

  Car   (25819 Hits)

  Main   (22070 Hits)

  Automation Systems & Equipment   (17104 Hits)

  Cable & Wire Equipment   (16952 Hits)

  Accounting   (12251 Hits)

  Advertising   (11735 Hits)

  Agricultural   (10910 Hits)

  Boats   (10818 Hits)

  Amusement   (10619 Hits)

 Recent Listings

  All Property Claims Limited - London, London, london.

  Get an Insurance quote, agree your claim and complete all repairs in one amazing free service.


  Tantric Massage London (UK) - London, London, Bloomsbury.

  "Tantric Massage London (UK) a peak of erotic bliss right at your door! Treat yourself with L


  Surrey Lofts - South East, Surrey, Walton On Thames.

  We offer the very best loft conversion service in Surrey with a huge amount of experience and happy


  Builder Directory Manchester - North West, Manchester, Manchester.

  Advertise your local building company or supply business here.
Local builder, trusted builders, r


  Daniel Adams Removals - South East, Buckinghamshire, Milton Keynes.

  Daniel Adams Removals is a professional removals company based in Milton Keynes and offers removal s


12 2014, 12:40 | exchange, class, foreign, BDCs, CBN, operators, their, action, policy, statement, rate, BDC, industry, has, Bank, economy, availability, Association
When the Central Bank of Nigeria revoked the licences of all class A Bureau de Change operators, not a few stakeholders in the foreign exchange market, felt that, though, the action was necessary to check money laundering, it would put some pressure on the dollar, especially at the end of the year. While announcing its decision, the apex bank had said that the target foreign exchange end-users had been sidelined, while large transactions that should have been channelled through the banking system had been carried out by the Class A BDCs. It, therefore, said the withdrawal was part of measures to stem the gross abuses of the enhanced Class A BDCs in line with its avowed commitment to eradicating money laundering. While BDC operators in the Class B category applauded the CBNs policy, saying the abolition of class A BDCs would eliminate monopoly in the system and create a level playing field in the foreign exchange market, affected Class A BDC operators said the withdrawal of their licences would lead to a decrease in the supply and availability of foreign exchange. According to them, the market may also be destabilised as a result of uncertainty as regards future availability of foreign exchange. The class A BDCs said in a statement that competition among their members had done a lot in stabilising exchange rate in the Nigerian economy. The statement said, We all know that more competition is better than less competition. we believe that the regulatory authorities should, in their functions, guide, support and help the players in the market to do the business according to laid down operational guidelines. Stopping their activities entirely has very serious negative consequences on the economy. Policy somersault, we all know, discourages foreign investors. the reasons offered by the CBN, no matter how genuine they may sound, are not good enough for the wholesale revocation of class A operators licences. The Chief Executive Officer, Promisory Investments Limited, Mr. Adekunle Salami, said, Even though the general public may not readily see the underlying implications of CBNs action, the impact will soon be felt by all as the effects begin to manifest. He said the action would lead to a steadily increasing and fluctuating rate of the dollar, wider gap between the official and black market exchange rates, untamed inflation rate, increasing incidence of business failure and unmitigated hardship for families, whose investments had already been eroded. The action will add to the pressure on the employment market as many people will be relieved of their jobs. Foreign investors may also be wary of investing in the country. they may perceive the unreliability of our systems in the form of policy somersault and poor approach to our public policy administration, Salami said. Another operator, who craved anonymity, because he was not authorised to speak on the issue, argued that regardless of the reasons offered by the CBN for the general revocation of the class A BDC operators licences, the action was ill-timed and lacked due process. He said some of the operators had never carried out any transaction, noting that some just got their licences a day before the clampdown. The action will lead to a decrease in the supply and availability of foreign exchange and there will also be negative perception in the market about future availability of foreign exchange. the competition among the class A BDC has achieved a whole lot in stabilising the exchange rate, he said. The Association of Bureaux de Change Operators of Nigeria, however, said that the abolition of class A BDCs by the CBN was a wake-up call for operators in the BDC industry. In a statement by the association, the President, ABCON, Dr. Emmanuel Balogun, said that the decision was a strong signal to all BDCs that the apex bank would not condone abuses or non-compliance with regulatory requirements. He added that the directive was particularly instructive to BDCs, who wanted to continue in business, especially accessing foreign exchange through the CBN. Balogun said the observations of the CBN, which led to the decision confirmed the position of the association that categorising BDCs did not add any value to the industry, but would rather give room for abuses and create a class of middlemen and the emergence of monopolistic practices in the industry, which would impede access to foreign exchange in the economy. He noted that the abolition of class A BDCs would eliminate the monopolist power enjoyed by these BDCs and would create a level playing field in the BDC sub-sector. He said, This will in turn facilitate the objective of a stable exchange rate, as all BDCs will now have to compete by offering attractive exchange rates to end users. the class A BDCs had used the huge volume of foreign exchange they purchased from the CBN to compete against traditional BDCs and dominate the market, especially in terms of exchange rate offered to end users. ABCON, being the umbrella body of the industry, however, welcomes erstwhile class A BDCs converting to class B. the membership of the association has always been open to all BDCs even during the era of categorisation. Immediately they comply with the licence requirements of the CBN and membership requirements of ABCON, all the privileges and rights of membership will be extended to them while they will be expected to fulfill all membership obligations. The apex bank had, in a statement, signed by its Head, Corporate Affairs, Mr. Muhammed Abdullahi, said the latest appraisal of the policy initiative revealed gross abuses of the enhanced official funding of the Class A category of the BDCs and the negation of the expected benefits to the economy. The statement said, The CBN has also been inundated with complaints from foreign countries that some Nigerian travellers indulge in cross-border transportation of large sums of foreign currencies in cash. Indeed, returns from the Nigerian Customs Services on foreign currency declaration by travellers show that large amounts, up to $3m cash, have been taken out of the country by individuals in single trips. The statement added that the Class A BDCs, whose licences had been so withdrawn were, however, free to apply for Class B licences with the attendant privileges by fulfilling the stipulated licensing requirements. The CBN had in February 2009, restructured the BDCs into categories A and B in order to further liberalise the foreign exchange market and enhance its allocative efficiency. The main objective was to facilitate end-user access to foreign exchange supply from official sources in order to boost economic growth by promoting productive efficiency of small and medium-scale enterprises. However, stakeholders in the industry had complained that the policy only gave room for round-tripping at the expense of genuine users of foreign exchange.
Related news:
» Forex currency converter::Forex exchange rates::Forex currency rates::foreign exchange::foreign currency exchange
The business of finance changes rapidly every day, with a plethora of world events driving the ...
» The Trade Point At Forex
Without any doubt, the trade point of the modern forex market is just like this light shining in ...
» Forex Brokers Professional Big Forex Institutions in Foreign Markets
FOREX brokers usually offer many different trading platforms for their clients. these platforms ...
» OANDA Launches Currency Converter App for Windows Phone 7
NEW YORK, Nov. 11, 2010 /PRNewswire/ OANDA Corporation, provider of innovative online forex ...
» Indian Forex Market Ppt Basic Differences Between Forex and Stock Markets
The word forex is a short form of the word Foreign Exchange, which is the basis of the commercial ...

Link to:
Add to Blog »
: Forex | 631 | »

You can login using the proposed social services to add a comment.
Comments from authorized users are added to the directory without checking administrator.

You can log in using: Yandex Google Mail.ru Twitter Loginza MyOpenID OpenID WebMoney
Your name: *  
Your email (optional):     
Review: *  
  characters left.
: *  
 Top Listings

  Overseas Express Ltd. - Chaudhry Hukam Dad - Director 0121-328-3907 - Unknown, West Midlands, Birmingham.

  Overseas Express Ltd. - Holiday & Travel Agencies - 178 Alum Rock Road

  (3310 Hits since0-0-22.10.2012)

  GlassHouse Technologies (UK) - Mr G Sponner - Director 2077438960 - London, Greater London, London.

  GlassHouse Technologies (UK) - Computer Support & Services - 1 Cornhill

  (77 Hits since0-0-22.10.2012)

  St Martins Accessories Ltd - Mr R Avis - Manager 2078369742 - London, Greater London, London.

  St Martins Accessories Ltd - Model Shops - 95 St. Martin`s Lane

  ( Hits since0-0-22.10.2012)

  Sales Activation Solutions - Mr J Leutton - Chief Executive 0845-345 6400 - London, Greater London, London.

  Sales Activation Solutions - Sales Promotion Consultants - Wolverstone House

  (106 Hits since0-0-22.10.2012)

  Design Floor Studio - Mrs Heather Gleave - Proprietor 1764660937 - Scotland, Perthshire, Auchterarder.

  Design Floor Studio - Floorcoverings - Retail - 162 High Street

  (188 Hits since0-0-22.10.2012)

 Products and Services

Projector Installations
Definition Audio Visual is a professional projector installation company that installs custom projec ...

Sound System Installations
Sound System Installation company based in Yorkshire that installs public address equipment, profess ...

 Updated company

  Greenford Ltd - Mr R Hutton - Director 01865 877 820 - South East, Oxfordshire, Oxford.

  Greenford Ltd
Civil Engineering
Unit 1, London Road
Oxford  OX33 1

  Hamlin Iles & Crago - Chartered Building Surveyors - South East, Surrey, Guildford.

  Hamlin Iles & Crago - Chartered Building Surveyors in London and south east - specialising in pa

  Service Graphics North - 01695 725 486 - North West, Lancashire, Skelmersdale.

   We Change Space As the UK's largest provider of , we have a long and proven track record of pro

  Broughton Pianos - North East, Worcestershire, Belbroughton.

  Broughton Pianos have been trading for over 30 years, and in this time have established themselves a

  Tekfirst - Yorkshire and the Humber, North Yorkshire, Harrogate.

  Tekfirst is a professional full-service digital marketing agency which offers an array of services f

 Featured Listings

  Pizza Hut - Mrs L Frampton 024 76603040 - West Midlands, West Midlands, Coventry.

  Pizza Hut - The kind of business activity - Restaurants - Pizzeria - SIC - 5530 - Address - Henley R

  Allblinds - Mr D J Tribe - Partner 1964541541 - Yorkshire and the Humber, Lincolnshire, Beverley.

  Allblinds - Blindspithawala Awnings & Canopies - Old School House

  Fubar Post Production - Mr P Coxon - Director 0151-707 8833 - Unknown, Merseyside, Liverpool.

  Fubar Post Production - Video Production Companies - 80 Duke Street

  Classic Alarms Ltd - Mr F Hitchins - Proprietor 2476594204 - West Midlands, West Midlands, Coventry.

  Classic Alarms Ltd - Burglar & Intruder Alarm Systems - 337 Holyhead Road

  Mike De Courcey Travel Ltd - Mr Bob Wildman - General Manager 2476302656 - West Midlands, West Midlands, Coventry.

  Mike De Courcey Travel Ltd - Coach Hire - Stonebridge Trading Estate

My Notebook (0) UK Business Directory
This Page Took 0.804 secs To Load, Current Template - "shape", Language - "en".
GZip Compression Disabled, 60 SQL Queries Executed, Took 0.61 secs ( Average 0.01 secs )

Business directoryFree xml sitemap generator
+44 (0) 247-699-67-96, +44 (0) 843-532-55-12