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Bureaux The Change Operators Appeal To Senate Over Raised Capital Base

Channels Television  
Updated July 2, 2014

7The Association of Bureau De Change Operators in Nigeria has sought the intervention of the Senate Committee on Finance over the decision of the Central Bank of Nigeria (CBN) to raise the capital base of operators from ten million to 35 million Naira.

At a meeting with members of the committee on Tuesday, the Acting President of the association, Mr Aminu Gwadabe, said that the policy would worsen the prevailing unemployment if eventually implemented.

The Acting President said the reasons cited by the CBN for the new policy were not tenable.

According to him, the argument that bureau the change operators’ aid the depletion of the foreign reserve does not hold water as the percentage of dollars sent to operators had been declining since 2012.

The House of Representatives had last week summoned the Central Bank Governor, Godwin Emefiele, over the new capital base, expressing worries that the new policy would send most of the operators out of business and asked the apex bank to suspend the new policy which members tagged elitist.

The CBN  reviewed its guidelines on 26 June, which includes an increase in minimum capital requirement for operation from the current 10 million Naira with effect from 15 July.

The apex bank’s reasons for the review was to correct observed deficiencies in the operation of the Bureau De Change in Nigeria which they say had led to sharp practices in the foreign exchange market. The apex bank also said it would help check the depletion of external reserves, financing of unauthorised transactions and ‘dollarization’ among others.