The Association of Money Exchangers of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to give BDCs autonomy to go digital.
This is in line with CBN’s technological reforms for BDCs for rate convergence and ABCON’s various digitalization reforms for exchange bureau operators from 2016 to date.
The disclosure is contained in a statement issued by ABCON and seen by Nairametrics, which notes that exchange rate fluctuations continue to cause the recent slowdown in Nigeria’s economic growth.
ABCON called on the CBN to diversify the scope and business model of BDC operators from locations to cashless digital platforms.
BDC autonomy
Abcon said in a statement:
- ”There is no doubt that exchange rate fluctuations have continued to support Nigeria’s low growth over the past few years.
- As a proactive organization and central bank licensed umbrella body for BDCs, the recent CBN plan reforms to make BDCs tech-savvy and Abcon’s various digitalization reforms for BDCs from 2016 to date. In line with this, we urge the CBN to democratize and centralize the BDC. Operational mechanisms that allow BDC autonomy to be digitized.
- In light of the above, we called on the CBN to diversify its scope of operations and business model from cash-based to cash-less digital platforms.
- “ABCON has long been preparing to enable our members to leverage technology in the launch of our BDC digitalization vision through our exchange rate platform (nsijabdcs.com), which we announced in 2018.
- “It is also important to note that Abcon has spent millions of dollars in IT R&D, design and implementation of various layers of automation for business transformation processes from manual to digital.”
- “Automation has enabled our members to deploy transaction monitoring systems in their locations, complete with IT office equipment and internet.
- “Our members are now recording transactions online in real-time on the AWS I Cloud and extracting and returning daily reports with an all-circuit real-time interface to the CBN.
- Our members also integrated with NIBSS clients’ BVN verification and validation platform when executing member transactions in 2019. ”
Cooperation with NFIU
He added:
- ”In collaboration with Abcon and NFIU, BDCs were registered on the GoAML and Nil-returns platforms to hand over thresholds of suspicious cash transactions to NFIU in accordance with AML/CFT obligations.
- “We also need to ensure that each of us is committed to compliance and appointing a compliance officer. Abcon is also constantly training. Work with security agencies to raise awareness.
- ABCON, as a regulatory administrator and self-regulatory organization, believed that the BDC provides the most effective and transparent pass-through effect and transmission mechanism for the apex bank’s foreign exchange policy. Convergence was achieved in 2006, 2009, and 2018-2020 before the outbreak of the new coronavirus infection (COVID-19) in 2020.
- “In view of the above, we have asked the apex banks to give unobjectionable approval to various interactions with the apex banks to give autonomy to the sub-sector to accept digital payments” Rate Convergence. ”
Advantages of autonomy
ABCON cited the following benefits of granting autonomy:First, it leads to the discovery of the true market rate.
- Second, it would strengthen the federal government’s ability to achieve a harmonized exchange rate policy.
- Third, ensure the effectiveness of BDC transaction monitoring systems and compliance obligations with statutory and regulatory requirements.
- “Fourth, it will harmonize and centralize the market, making BDC a market adjustment and correction mechanism.” Similarly, additional jobs will be created for over 40,000 direct and indirect employees in the BDC subsector. will be done.
- “The end result will be transparency, accountability and ease of oversight.”
