BDC Operators Address Unstable Forex Rates, As Naira Hit N615 Per Dollar

June 7, 2022

The Association of Bureaux De Change Operators of Nigeria (ABCON) has urge the Central Bank of Nigeria (CBN) to partner with the group in order to end multiple exchange rates, as rise Naira grows weaker.

Naira had closed the official market at N420.25/$1 on Monday, against the N419.75 to one dollar the currencies ended trading with on the Investors and Exporters window the previous day, while naira sold at N615/$1 in the black market.

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With Nigeria operating two forex market regime, that has seen individuals and businesses divided on which foreign exchange market favours them, ABCON president, Aminu Gwadabe, said the group’s members can solve the multiple exchange rates.

His comment was disclosed in a statement published on ABCON’s Facebook account, on Monday, where he said the group is still selling forex for personal travel allowance (PTA), business travel allowance (BTA), school fees, medical bills payment abroad, amongst others.

Gwadabe explained that the Bureau de Change operators could stabilise the naira across all market, if the CBN collaborate with them, rather than criminalising the activities of ABCON members.

Recall that the central bank Governor, Godwin Emefiele, had accused the BDC operators of illegal financial flows, as well as money laundering in the country. In light of the allegations, the apex bank boss suspended sales of forex to ABCON.

Gwadabe said, “The hasty generalisation that criminalises the BDC sub-sector as responsible for all market crisis and infractions like selling dollars with higher premium above regulatory limit, promoting the loss of confidence in the near, and multiplicity of the exchange rates, is not in the best interest of the market and economy.” the statement reads.

Adding that, “It is in view of this disturbing situation and the need to strengthen BDCs value chain as obtainable in organised climes that we urge the regulators and policymakers to consider BDCs as the most potent tool in liberalising the foreign exchange market and stopping multiple exchange rates in the system.”

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