ABCON Unveils Agenda for 2024, Ready to Work with CBN to Help Stabilise Naira Exchange Rate
- Bureau De Change (BDC) operators have once again expressed readiness to work with the CBN of Nigeria for naira stability
- ABCON, the umbrella body of the BDC operators, outlined its plans and also called on the CBN to reverse some of its decision
- Data from the CBN shows that there are over 5,000 registered and approved BDC operators in Nigeria
The Association of Bureau De Change Operators of Nigeria (ABCON) have called on the Central Bank of Nigeria (CBN) to allow BDC operators to participate in the official foreign exchange market.
ABCON believes this will provide liquidity in the retail end of the foreign exchange market and help unify the various exchange rates.
Source: Getty Images
In recent months, the CBN has introduced various foreign exchange intervention measures to improve liquidity in the forex market to stop the free fall of the naira against the dollar and stabilise the market.
ABCON is ready to help CBN
In a chat with Legit.ng, Aminu Gwadabe, ABCON president, stressed that BDCs can play an important role in helping the CBN achieve naira stability.
His words:
"ABCON as a body will continue its advocacy on BDCs inclusion in the Nigerian Autonomous Foreign Exchange Market (NAFEM) which is the official exchange market window and a review of its opaque and traditional cash business model.
"The BDCs are the third leg of the Nigeria foreign exchange market at conception for moderating and correcting the volatility in the foreign exchange market.
"The BDCs command the effective, efficient and transparent pass-through effect of the apex bank foreign exchange policies, as we witnessed in 2006, 2009, 2017 to 2020 before the outbreak of COVID 19.
"In the same vein, we have seen the unintended consequences on their suspension from 2021 to date that depreciated our local currency for over 50% in the forex market."
"Our programs in ABCON as a self regulatory and an umbrella body of our members, we will continue to engage with relevant regulatory and other relevant agencies in safeguarding the sustainability of our members Buisiness outfits without going extinct."
ABCON unveils plan for 2024, sets agenda for CBN
Speaking further, Gwadabe revealed some of ABCON's plans for BDC operators in 2024.
He said:
"Our vision on BDCs autonomy and digitization for democratizing and centralizing the market also align with the recent apex bank policies on virtual Asset trading and we will push for our inclusion.
"In another perspective, as part of our internal sub-sector reforms, we will continue with sensitizing our members in embracing new technologies, partnerships, and corporate Governance to make our opportunities becoming realities.
"Finally, training and training to sharpen our members expertise and laundering the image of our sub sector that is bedeviled with stigmatization and generalizations of criminalization."
ABCON's solution to naira fall
The ABCON president also advised the apex bank to leverage the BDC operators to achieve naira stability.
Gwadabe added:
"For the foreign exchange market to remain stable for proper planning we advise a single markets fully liberalized with no regulatory influence in its operations.
"Secondly, the cumbersome Dom account operations with the commercial banks should be reviewed by making it friendly for depositors and business relationships.
"We also advise a system that will allow the import of foreign currency for the BDCs and its partners to inject liquidity into the market.
"Finally, we advise revisiting the suspension of CBN's sales of dollars to BDCs as a quick fix to address liquidity in the retail end of the market where volatility is most pervasive."
Nigeria Customs sets new exchange rate to clear imported goods
Earlier, Legit.ng reported that the Nigeria Customs Service adjusted the foreign exchange rate for clearing imported goods at Nigerian ports.
The new rates were intended to reflect the depreciation of the naira against the dollar across the foreign exchange markets.
With the new rate, the cost of imported goods will increase nationwide.
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Source: Legit.ng
Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.
Aminu Gwadabe (President at Association of Bureaux de Change Operators of Nigeria) Alhaji Aminu Gwadabe is the president of the Association of Bureau De Change Operators of Nigeria (ABCON) that represents the interests of licensed Bureau de Change operators in Nigeria. Gwadabe comments on issues relating to the foreign exchange market, currency exchange rates, and economic policies in Nigeria over the years.
