Bureau de Change Operators List Reasons for Naira's Recent Appreciation Over Dollar
- The Nigerian naira has been improving against the US dollar in all foreign exchange markets over the last few days
- The sharp rise of the naira followed the introduction of a combination of several policies by the CBN
- ABCON President Aminu Gwadabe has listed and explained the factors responsible for the naira's recent good performance
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Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
The Association of Bureaux De Change Operators of Nigeria (ABCON) has commented on the recent rise in the value of the naira against the US dollar in the official exchange market.
In a statement on Saturday, February 1, 2025, ABCON president Aminu Gwadabe said the naira’s appreciation shows that the Central Bank of Nigeria’s (CBN) policies and foreign exchange reforms are working well.
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Why naira is on a rebound
Gwadabe noted that the naira has continued to gain value in both official and parallel markets, reaching N1,485 per dollar in the official market.
He pointed out that this was the strongest the currency had been in seven months.
Over the weekend, he added, the naira also strengthened in the parallel market, rising to N1,610 per dollar. This, he said, has boosted confidence in the ongoing forex reforms.
Explaining the reasons behind the naira’s recovery, Gwadabe highlighted factors such as the newly introduced foreign exchange code, improved investor confidence, increased investment in the oil and gas sector, and better management of diaspora remittances to improve liquidity and transparency in the forex market.
According to TheCable, he also emphasized that providing support to Bureau De Change operators would help further strengthen the naira against the dollar.
Review capital requirements for BDCs
Gwadabe urged the Central Bank to reduce the capital requirement for BDC recapitalization so that more operators can afford it.
He explained that many BDC operators are struggling to meet the required capital base.
On February 23, 2024, the CBN raised the minimum capital for tier-1 BDCs to N2 billion and for tier-2 BDCs to N500 million.
Before this new rule, all BDCs only needed a minimum capital of N35 million.
In order to meet up with the recapitalisation deadline set by the CBN, the BDCs have started discussions on mergers and acquisitions.
ABCON sets operating hours for BDC operators
In a related development, Legit.ng reported that ABCON had directed its members to operate strictly between 8 am and 6 pm.
In a memo signed by its executives, the association warned that any member who fails to comply will face disciplinary action.
ABCON stated that these operating hours follow earlier directives from the CBN and the National Security Agency (NSA) to ensure transparency and better regulate activities in the retail forex market.
The memo also reminded BDCs operating at airports to adhere to the business hour regulations set by the Nigeria Civil Aviation Authority (NCAA).
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Source: Legit.ng
