“We’re Ready:” ABCON Sends Important Message to CBN on Dorm Account Regulations
- The Association of Bureaux de Change of Operators of Nigeria has asked the CBN to review the laws governing domiciliary accounts in Nigeria
- The Association Chairman, Aminu Gwadabe, said the move will reduce Forex hoarding
- He commended the idea of digitizing the Forex market to restore confidence in the system
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Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy
President of the Association of Bureaux de Change Operators of Nigeria (ABCON), Aminu Gwadabe, has asked the Central Bank of Nigeria (CBN) to review the laws on domiciliary accounts to stop Forex hoarding.
TheCable reports that the ABCON Chairman stated this on Tuesday, October 31, 2023, as he commented on the recommendations of the Presidential Committee on Fiscal Policy and Tax Reforms.
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Tinubu approves 20 recommendations of Tax Reform Committee
The Committee, led by renowned tax policy expert Taiwo Oyedele, proposed 20 policy recommendations to improve the Forex market and end volatility in the system.
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President Bola Tinubu approved the Committee’s recommendations and asked for immediate implementation across ministries, departments, and agencies in Nigeria.
One of the proposals of the Oyedele-led Committee was the incorporation of Bureaux de Change operators into the FX window and digitizing the Forex regime to reduce hoarding.
The reforms will close the disparity between the official and parallel market rates, which might lead to a ‘fair price’ before the end of 2023.
ABCON says Committees recommendations will solve Forex issues
The ABCON Chairman said the policy on digitizing the FX market is a good idea for the dealers.
“Most of our operations have been online. So we are ready for that journey, and we have started already,” Gwadabe added.
Gwadabe said that if the proposed measures are adopted, confidence will return to the Forex Market.
Nigeria faces worst Forex crisis in history
Nigeria is battling the most significant Forex volatility in history, with analysts saying that the country has about $7 billion in Forex backlogs, which have eroded confidence in the market and driven away investors.
However, the Nigerian government expects a $10 billion Forex inflow in the coming weeks to stabilize the economy.
The naira has experienced its worst depreciation in history, falling as low as N1,310 to a dollar in the parallel market.
On Monday, October 30, 2023, the naira witnessed its worst fall in the official market, plummeting to N1,000 per dollar.
“It Is Not Us”: ABCON reveals those behind naira free fall as one dollar sells for N1,200
Legit.ng reported that The Association of Bureau de Change Operators (ABCON) of Nigeria has denied involvement in the naira's sharp depreciation in the foreign exchange market.
In a statement, the association's president, Aminu Gwadabe, said unlicensed forex dealers and not its members are responsible for the speculative activities.
He stressed that the high exchange rate does not benefit Bureau De Change operators.
Source: Legit.ng
