The Association of Bureaux De Change Operators of Nigeria (ABCON) has issued an urgent appeal to the Central Bank of Nigeria (CBN), urging a revision of the applicable exchange rate for its members. ABCON’s National President, Aminu Gwadabe, conveyed this plea in a letter addressed to the Director of the CBN’s Trade & Exchange Department, obtained by Findwhosabi..
The request stems from a disparity observed between the CBN’s pegged rate of N1,251/$ for BDCs and the current parallel market rate of 1,235/$, which has rendered the CBN’s selling rate to BDCs costlier and less competitive for retail buyers seeking more affordable rates from informal forex operators.
Gwadabe highlighted the predicament faced by many BDCs awaiting their dollar allocations, a delay exacerbated by stringent scrutiny of documentation at designated collection centers. This delay not only exposes BDCs to exchange rate risks but also poses significant financial losses.
Despite these challenges, ABCON commended the CBN’s efforts in recalling BDCs into the official FX window and its broader initiatives to stabilize the naira against global currencies. Gwadabe emphasized ABCON’s commitment to collaborating with the apex bank to achieve exchange rate stability and foster economic growth.
In light of ongoing market developments and forecasts indicating further naira appreciation, ABCON urged the CBN to review downward the funding rate of the last tranche and implement medium-term automation of payment processes to enhance efficiency and transparency.
ABCON emphasized the importance of a swift response from the CBN to address the exchange rate disparity, which would bolster confidence among BDC operators and facilitate their effective participation in the bidding process.
As the forex landscape evolves, ABCON remains proactive in advocating for measures that align with market realities and promote a conducive environment for sustainable economic growth. Stay tuned as the CBN evaluates ABCON’s appeal and navigates the complex dynamics of Nigeria’s foreign exchange market.