Emmanuel OchayiThe Association of Bureaux De Change Operators of Nigeria (ABCON) has made a pressing appeal to the Central Bank of Nigeria (CBN) to consider adjusting its applicable exchange rate.
ABCON’s National President, Aminu Gwadabe, emphasized the need for a lower exchange rate in a letter addressed to the Director of the CBN’s Trade & Exchange Department.
Gwadabe expressed concerns over the current exchange rate dynamics, citing difficulties faced by BDCs due to the disparity between the CBN’s set rate and the prevailing parallel market rate.
He highlighted the challenges encountered by BDCs in offloading their forex holdings to retail buyers, who are increasingly turning to undocumented forex operators offering cheaper rates.
“We are facing a concerning situation where our members are yet to receive their disbursements despite paying for dollar allocations at a rate higher than the prevailing open market rate,” Gwadabe conveyed in the letter.
The appeal comes amidst a backdrop of appreciation in the value of the naira, leading to a disparity between the CBN’s selling rate to BDCs and the market rates. ABCON commended the efforts of the CBN in bolstering the naira’s value but stressed the urgency for adjustments to reflect the current market realities.
ABCON’s president underscored the association’s commitment to collaborating with the CBN to achieve exchange rate stability and foster economic growth. He also expressed optimism regarding market corrections and continued appreciation of the naira facilitated by CBN policies.
In addition to the plea for exchange rate adjustments, ABCON urged for enhancements in the payment process at disbursement centers, advocating for automation to ensure timely payments and streamline transactions. The association proposed the introduction of a cut-off time for payments and bid collections to improve administration and control of the process.
The request for exchange rate adjustments and process refinements reflects the collective concerns of BDC operators regarding the sustainability of their businesses amidst evolving market dynamics.
ABCON emphasized the importance of swift action from the CBN to address the exchange rate disparity, which is crucial for restoring confidence among BDC operators and optimizing their participation in the forex market.
The appeal from ABCON underscores the intricate relationship between regulatory interventions and market forces in shaping exchange rate dynamics, highlighting the need for adaptive policies to maintain stability and facilitate economic resilience in Nigeria’s financial ecosystem.
