ABCON praises CBN for its dollar sales to BDCs
The Association of Bureaux de Change Operators of Nigeria (ABCON) has lauded the Central Bank of Nigeria (CBN) for reintroducing dollar sales to Bureaux De Change (BDCs).
In a statement, ABCON President, Dr. Aminu Gwadabe, highlighted that alongside monetary policy tightening, resulting in interest rate hikes and increased investment in government instruments, as well as the clearance of $7 billion forex backlog forward commitments, the reinstatement of BDC operations has notably augmented dollar liquidity at the retail level of the forex market.
Gwadabe conveyed ABCON's appreciation to the CBN under the leadership of Cardoso and other relevant agencies for acknowledging BDCs as integral participants in the foreign exchange market, serving as an effective mechanism for exchange rate transmission in forex management.
He remarked, "The inclusion of BDCs in the mainstream foreign exchange market has not only demystified illicit economic practices such as hoarding, rent-seeking, round-tripping, and FX holding positions but has also fostered exchange rate convergence."
Gwadabe noted that the stability in exchange rates is already yielding positive effects on the prices of goods and services. For instance, international school fees have decreased by 15%, medical tourism costs have reduced by 20%, and airfare prices for both local and international trips have dropped by 25%.
Furthermore, he highlighted that the success narrative continues, as the naira traded at N1,255/$ on Saturday, even lower than the advised N1,269.765 rate for BDCs to sell.
Gwadabe characterized the ongoing market developments as revolutionary, emphasizing that a stable naira will attract more foreign portfolio inflows to the economy.
Leave A Comment