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Nigerian Presidential Adviser on Financial Affairs Tope Fasua has urged the Central Financial institution of Nigeria (CBN) to scale back the variety of bureau de change (BDC) operators within the nation by 95%, from over 5,000 to about 200.
Fasua, a number one economist and chief govt officer of International Analytics Consulting, made the decision at an financial coverage occasion organized by the Abuja Chamber of Commerce and Trade, with the theme, “Unification of international alternate and the impact of gas subsidy removing on the enterprise neighborhood.”
He stated that the excessive variety of BDCs makes it tough for the CBN to oversee them, and that this results in irregularities within the foreign exchange market.
“We have to do some structural reforms. For instance, I imagine we should always reform the BDCs’ sector, make them stronger. You possibly can’t handle over 5,000 BDCs promoting cash on the streets, it isn’t regular,” Fasua stated.
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He added that the CBN ought to incentivise the BDC sector and banks to offer foreign exchange to Nigerians extra shortly.
“If we will do the structural reforms within the BDCs sector and the banks and supervise them properly, the CBN with the reserves that we’ve got can incentivise that sector, permitting folks to get the cash a lot faster,” Fasua stated.
He additionally referred to as for the definition of the unlawful foreign exchange market, with a purpose to obtain stability within the official market.
“It’s important to outline the unlawful market and by then, we can discover stability,” Fasua stated.
Buttressing his factors, whereas talking on the sidelines of the occasion, the presidential adviser stated, “We can not handle 5,000 BDCs, possibly we ought to be 100 or 200. In the UK as a tourism vacation spot, they’ve 145 BDCs the final time I checked. Within the UAE they’ve 130.
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“So what are we doing with 5,000 BDCs? You’ll by no means be capable of supervise them. What number of workers would it is advisable to take a look at their returns and verify them? Due to this fact, you want giant and well-established BDCs, in addition to banks, to have the ability to fulfill the wants of the folks. After which the federal government can be capable of incentivise that market.”
Fasua’s name comes at a time when Nigeria is grappling with a international alternate disaster. The naira has depreciated sharply in opposition to the US greenback in current months, and companies are struggling to entry foreign exchange.
The CBN has taken quite a lot of measures to deal with the foreign exchange disaster, together with limiting the sale of foreign exchange to BDCs. Nevertheless, these measures haven’t been very efficient up to now.
It stays to be seen whether or not the CBN will heed Fasua’s name to scale back the variety of BDCs. Nevertheless, his proposal is price contemplating, because it may assist to enhance the effectivity and transparency of the foreign exchange market.
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