In a statement obtained by The Point, the association said: "Following an emergency meeting of all forex bureaus held on Thursday, April 27, 2023, it was agreed that bureaus cannot sustain the current losses on their operations due to implementing the CBG reference rate.”
ALFOB further revealed that they have written a letter to all forex bureaus to inform their partner Money Transfer Operations (MTOs) to streamline the CBG reference rates to generate some margins. Unfortunately, the association said that the high payout rates still persist. Bureau heads stated that the situation continues to create 'unabated and unsustainable' losses for bureaus.
"We are aware of some bureaus that have already stopped paying out to customers of certain MTOs due to the dilemma. It is against this backdrop that forex bureaus have unanimously agreed to cease operations to the public with effect from Wednesday, May 3, 2023, until further notice,” the statement stated.
According to ALFOB, the decision is taken in absolute good faith to avert the collapse of bureau operations, hoping the situation will be addressed soonest.
