“No More N1k”: ABCON Moves To Crash Dollar at Black Market, Agrees On New Exchange Rate
- Bureau de Change dealers are set to crash the rate of the dollar on the black market across the country
- ABCON initiated the move in support of the CBN efforts to stabilise the naira at the foreign exchange market
- The wide disparity between the black market and the official exchange rate has been a real concern for the CBN
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The Association of Bureau de Change Operators (ABCON) has kicked off plans to bring the dollar exchange rate below N1,000/$.
The report has it that the executives of ABCON have instructed Bureau de Change dealers across the country to stop buying dollars for more than N900 from Nigerians at the black market.
Source: Getty Images
The move ABCON believes will sanitise the parallel market and help the naira rebound from N1,045 to around N900 or N950 in the days ahead.
Naira to dollar exchange rate
Whistler reports that ABCON also hopes the decision will convince the new Central Bank governor, Olayemi Cardoso, to resume the sale of forex to BDCs operators that stopped in 2021.
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A member of ABCON quoted in the report said that the plans to reduce the exchange rate to below N1,000 cut across all the BDCs in Abuja, Lagos, Port Harcourt, and Kano.
Also, traders will begin implementing the new exchange rate after selling the dollars bought for above N1,000 in the last few weeks.
Abdullahi Yusuf, Chief Executive Officer of AYA Modo Nigeria Limited, confirmed the plans to peg the dollar to naira exchange rate below N1,000 at the black market.
However, he called on the CBN to resume dollar sales to registered BDC operators for the plans to be successful.
Legit.ng reached out to Aminu Gwadabe, the president of ABCON, but he failed to confirm the directive.
However, he noted that ABCON as an association would comply with the CBN allowable limit of -2.5 per cent to +2.5 per cent of the Nigerian Foreign Exchange market window weighted average rate of the previous day.
"As usual, we believe that making the Naira stable requires the CBN to make our sector commercially viable by opening up other sources for our members to ensure business continuity.
"ABCON and its members are Nigerians and will embrace any CBN policy aimed at ensuring Naira stability and including BDCs as a third pillar for moderating and regulating the parallel market.
"The CBN has issued us directives that we should only transact our business at their referenced anchor rates and advise our members to do the necessary."
Bureau de Change operation in Nigeria
There are a total of 5,691 CBN-approved BDC operators. Here's a breakdown of the top states with the highest numbers.
- Lagos: 2,958
- FCT: 1,179
- Kano: 981
- Anambra: 259
- Kaduna: 55
- Abia: 50
- Oyo: 32
- Enugu: 25
CBN announces dollar to naira price verification portal
Meanwhile, in another report, it was revealed that the Central Bank of Nigeria had introduced a new portal that would put an end to malpractices in the foreign exchange market.
The portal is expected to be a game-changer if done correctly.
Source: Legit.ng
