Forex crisis: Why CBN should review recapitalization requirement for BDCs – ABCON

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The Association of Bureau De Change Operators has faulted the Central Bank of Nigeria’s fresh recapitalization requirements for its members amid the foreign exchange crisis.

ABCON president, Aminu Gwadabe disclosed this on Thursday at the 8th edition of the Vanguard Economic Summit.

Recall that the CBN announced a fresh guideline for BDC operators in Nigeria on Wednesday.

The apex bank ordered all BDC operators to re-apply for licenses, increasing the minimum capital requirement for tier-1 and tier licenses to N2 billion and N500 billion, respectively.

However, Gwandabe has called for a review of the CBN’s directive for BDC operators to increase their capital base, saying it is against global standards.

“You increased the capital from N10 million to N35 million in 2014, and now you are raising the capital base of BDCs from N35 million to N500 million for Tier 2 operators and N2 billion. It’s highly against the global standard,” Gwadabe said.

The developments came as the Naira depreciated on Thursday at both parallel and official forex markets after four days of appreciation.

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