Thursday, December 1 2022

The Association of Bureaux of Currency Exchange of Nigeria (ABCON) said the Bureaux de Change (BDC) are at the center of the Central Bank of Nigeria (CBN) exchange rate policies.

ABCON chairman Aminu Gwadabe, who revealed this at a press conference in Lagos, said that although the apex bank has maintained the suspension of foreign exchange sales to BDCs, this does not lead to the revocation licenses as operators are still under the jurisdiction of CBN regulations.

Gwadabe said that smaller retail exchange institutions – BDCs – remain central to the implementation of the CBN’s exchange rate policy, hence the need for the regulator and the public to continuously support the role of BDCs in the stability of exchange rates.

This, he added, can be achieved through increased automation of their processes and providing more transaction channels for sustainable price equilibrium while eradicating rent seeking, currency substitution and speculation.

“I am very confident that Nigeria will enjoy in the not too distant future a stable exchange rate and the availability of forex in the local economy as long as the right people for the implementation of government policies get this responsibility,” a- he declared.

According to him, CBN Governor Godwin Emefiele had tried to introduce many policies beyond the conventional money supply that were not in line with market realities.

Gwadabe cited the Naira-4-Dollar program of N5 bonuses for every $1 of diaspora remittances as well as the N65 rebate for every dollar of non-oil export earnings and other incentives as laudable, but this needs an overhaul fully with stakeholder engagement.

“I am no prophet of doom or a student of the continued depreciation of the naira, but unless basic goodwill and courage are demonstrated, the naira will continue to suffer losses in exchange for greenbacks,” asserted Gwadabe.

According to him, an average BDC operator licensed by CBN is in a coma and heading towards extinction.

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