BDCs Finally React as CBN Allows Members to Buy $25,000 Weekly from NAFEM

• The CBN has received praise from ABCON for authorising the sale of interbank FX to its members
• This follows the temporary granting of access to the Nigerian Autonomous Foreign Exchange Market to the BDC operators
• The development is anticipated to enable them to buy $25,000 every week from NAFEM between December 19 and January 30

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market

The Association of Bureaux De Change Operators of Nigeria (ABCON) has applauded the Central Bank of Nigeria (CBN) for approving the sale of interbank foreign exchange (FX) to its members.

This is as qualifying bureau de change (BDC) operators have been granted temporary access to the Nigerian Autonomous Foreign Exchange Market (NAFEM), allowing them to purchase $25,000 weekly from banks between December 19 and January 30, as announced by the CBN on Thursday, December 19.

In a statement released Friday in response to the announcement, ABCON President Aminu Gwadabe said that the organisation's members are happy that the CBN has made it possible for them to access the new electronic foreign exchange matching system (EFEMS) market through the banks.

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According to Gwadabe, the programme will enhance adherence to monetary and security agency commitments.

“As contained in the circular, the purpose is to meet the critical retail end needs of the market where the BDCs have significantly played a potent and effective transmission monetary mechanism of the central bank policies,” the president said.

“The benefits to be achieved in the implementation of this circular includes and not limited to liquidity injection in the retail end and enhancing price discovery where volatility is pervasive, stable exchange rates, eliminate or reduce illegal economic behaviours like speculation and currency substitution in the economy.

“Other benefits includes job creation, data generation, lower inflationary rate and improving the fragile security situation.

“To our members it will revitalize our operations, making us functional and profitable.”

The president asked ABCON members to follow the circular's instructions and make sure the intended outcome of the local currency's appreciation is realized.

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Additionally, he suggested that ABCON members work from their offices, submit their returns on a regular basis, and make sure that their operations were smoothly automated.

Furthermore, Gwadabe counseled the banks to guarantee openness and fairness in the way they fulfill their obligations to members across the country.

BDC operators list 3 factors responsible for dollar's crash

Legit.ng reported that in the last week, the value of the naira has increased dramatically in relation to the US dollar, rising by more than N200 from a peak of N1,780 to N1,500.

Nigerians expressed gratitude for the currency's recent impressive performance, which has given the Central Bank of Nigeria's (CBN) exchange rate strategy fresh life.

Aminu Gwadabe, the president of the Association of Bureaux De Change Operators of Nigeria (ABCON), praised the government and the Central Bank of Nigeria (CBN) for their efforts in response to the recent increase in the value of the naira in an interview with Legit.ng.

Source: Legit.ng