Categories: Forex

CBN to Replace Local BDCs With Travelex

The Central Bank of Nigeria (CBN) is currently proposing to replace Bureau De Change (BDC) operators with Travelex, a global foreign exchange dealer.

According to the report, in an effort to ease the pressure created by CBN decision to discontinue sales of Forex to BDCs, CBN is grooming Travelex as an alternative forex dealer to BDCs across the country.

“CBN’s desperation to meet dollar demands from banks. Government agencies and importers prompted the decision to give dollar import license to Travelex”, said Aminu Gwadabe, a chief executive Officer at SABIL Bureau De Change Limited.

He further stated that “Travelex has secured approval to open more offices across the country where dollar will be directly sold to banks, government and other end-users in a move to bridge the current supply gap of Forex in the economy.”

Gwadabe believed that even though Travelex is licensed as a wholesale supplier and forex importer into Nigeria, BDCs retail segment remains its intention. He insisted that the current move by the CBN will finally allow Travelex to take over the retail segment of the BDCs.

A CBN official, Ibrahim Mu’azu said “CBN’s decision to stop funding BDCs will create room for Travelex to do more  Forex retail business going forward, they have been in the market for a long time”

The general manager of Travelex Nigeria, Anthony Enwereji admitted that the fact that the company sells dollar at a very low rate is its advantage over the BDCs.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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