BVN: BDCs Now Comply with Forex Limits

The implementation of the use of the Bank Verification Number (BVN) as a requisite for the purchase of foreign currency from the Bureau De Change (BDC) segment of the market may have compelled the operators to comply with the earlier directive on the maximum amount, which they could sell to low forex end users for travel allowances, medicals, school fees etc.

A report yesterday indicated that most BDC operators are now left with large volume of unsold dollar cash, most of which they bought from the Central Bank of Nigeria(CBN) official window.

It was gathered that the operators are blaming the BVN requirement as mainly responsible for their inability to sell.

Their assertion was that customers now shun the BDCs and in its stead, patronise the parallel market, which pushed the rate at the parallel market to above N225 as at last week.

When contacted, the Director, Corporate Communications, CBN, Mallam Ibrahim Mu’azu discountenanced the assertion that introduction of the BVN as a requirement for the sale of foreign exchange was responsible for the low patronage.

He described such assertion “as just a ploy to arm-twist or blackmail the CBN into reversing the directive on BVN requirement.”

Mu’azu further noted that BDCs were licensed to service the low end users whose demand fall between $4,000 and $5,000 (and below) as Basic Travel Allowance (BTA) or Personal Travel Allowance (PTA) as the case may be.

“However, the BDC operators have engaged in bulk sales of foreign currency over the years to those who carry the foreign currencies across the borders. Hence the introduction of the BVN as a mandatory requirement for purchasing foreign currencies from the BDCs has checked that flagrant disobedience of regulations guiding of their operations, “he said.

Speaking further, the Mu’azu noted that those with legitimate demand for foreign exchange need not fear as the BVN requirement is to facilitate the enforcement of authorised limits of sales and spread to end users and reduce the incidence of multiple purchases, round tripping and illicit transfer of funds.

In practice, travelers who need to buy the forex submit more personal information like bank statements, international passport details and other personal information to the embassies, travel agents and airlines on demand without of compromise while the BVN is just a number which ordinarily the BDCs cannot access their personal information.