The Federal Government has been asked to increase the capital requirements of Bureau De Change (BDCs) operators that seek to participate in Nigeria’s Foreign Exchange (FX) market.
This is the position of the Policy Advisory Council of President Bola Tinubu who in a report titled ‘Policy Advisory Council Report: National Economy Sub-committee’, the council highlighted key reforms that the government can implement to improve the monetary policy of the country.
It advised the government to allow the banks to operate as the primary dealers to supply the FX market through a willing buyer/willing seller model.
The council said only BDCs with a strong capitalisation should be allowed to participate in the country’s FX market.
“Raise the capital requirements of Bureau De Change Operators (BDCs) to ensure only strong, well-capitalized and automated BDCs are allowed to operate. e.g. Travelex.
Introduce an effective exchange rate management system, viz the crawling peg,” the advisory body suggested.