“Naira Will be Affected”: ABCON Speak as CBN Extends Deadline For Dollar Sales to BDCs
- The Association of Bureau de Change Operators of Nigeria (ABCON) has praised the CBN for extending the deadline for dollar sales in the FX market
- ABCON President, Aminu Gwadabe, disclosed that the move will ease the pressure on the foreign exchange market
- He, however, said banks are not complying with CBN’s directive to sell forex to Bureau de Change operators
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Association of Bureau de Change Operators of Nigeria (ABCON) has lauded the Central Bank of Nigeria (CBN) for extending the deadline for eligible dealers to access the official foreign exchange market.
ABCON President, Aminu Gwadabe, said the gesture aligns with the apex bank’s efforts to ensure continuity and stabilising the FX market.
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ABCON raises alarm over banks’ refusal
CBN announced the deadline extension on Monday, February 3, 2025, allowing eligible operators to access the official window for forex transactions.
The News Agency of Nigeria (NAN) said the ABCON boss raised worries about banks not complying with CBN’s December 2024 notice, granting BDCs temporary access to the Nigerian Foreign Exchange Market (NFEM) to purchase $25,000 weekly from December 19, 2024, to January 30, 2025.
Gwadabe urged commercial banks to partner with CBN and BDC operators to implement the circular to ensure smooth operations.
According to Gwadabe, ABCON members received the news of CBN’s extension with glee, considering it part of the regulator’s efforts to ensure continuity and commitment to inclusiveness of the sub-sector in the official window.
“We, however, call on all money deposit banks to partner with CBN and our members in the implementation of this circular, to ensure liquidity in the retail end sector and the Naira’s ongoing stability.
“On behalf of my members, I extend my sincere gratitude to the CBN management for their flexibility and transformative leadership.”
Experts predict a win for the naira
Meanwhile, experts have said the deadline extension would ease the pressure on the naira, which has been bullish against the dollar.
The Nigerian currency has been on a winning streak against the dollar, appreciating below the N1,500 ceiling.
The local currency experienced its best moments on Friday, January 31, 2o25, when it rose to N1,474 per dollar, a seven-month high.
Analysts have predicted more wins for the naira following a series of policies implemented by the CBN, notably, the FX Code launch.
The FX Code boost transparency and FX liquidity in the foreign exchange market.
Naira reverses 7 days gain
Legit.ng earlier reported that the Nigerian naira paused its week-long gain against the US dollar on Monday, February 3, 2025.
The naira has been bullish against the dollar in the past week, accelerating to N1,474.79 as of Friday, January 31, 2025.
Analysts say the gains recorded in the foreign exchange market were due to several policy changes introduced by the Central Bank of Nigeria to improve liquidity.
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Source: Legit.ng
