Emmanuel OchayiIn a bid to bolster liquidity in the forex market and enhance exchange rate stability, the Association of Bureau De Change Operators of Nigeria (ABCON) has petitioned the Central Bank of Nigeria (CBN) for broader participation of its members.
ABCON’s President, Aminu Gwadebe, emphasized the importance of allowing BDCs to conduct online dollar operations and serve as Point of Sale (POS) agents.
According to him, “We at ABCON advise that BDCs should be allowed to access dollars or diaspora remittances through the autonomous forex windows like allowing operators to receive IMTOs proceeds, carrying out online dollar operations and Point of Sale (PoS) Agency, among others.”
ABCON argued that enabling BDCs to handle over $20 billion in annual diaspora inflows into the Nigerian economy would boost dollar liquidity and fortify the naira.
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Additionally, Gwadebe highlighted the need for BDCs to play a more active role in addressing the ongoing forex crisis, stressing that their participation in the retail segment could contribute to a stronger and more stable exchange rate.
He acknowledged the challenges facing Nigeria’s forex market and called for collective efforts to reverse the trend of currency depreciation.
The naira recently crossed the N1,100 to the dollar mark in the parallel market due to ongoing dollar scarcity and speculative activities by unlicensed forex dealers.
ABCON has also expressed concern over these illegal operators and their impact on the market’s integrity, even though its Self-Regulatory Organization status has been suspended.
While the CBN has taken measures to bridge exchange rate gaps, ABCON believes that involving BDCs in the solution recipe could lead to a more liquid market with stable rates.
Gwadebe concluded by emphasizing the need for prompt and strict enforcement of regulatory sanctions against non-compliance with guidelines to deter illegal forex dealers and promote market stability.
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