ABCON says review of FX rate to BDCs has made Naira firmer


The Association of Bureaux De Change Operators of Nigeria (ABCON) on Tuesday said the downward review of the rate the Central Bank of Nigeria (CBN) sells dollars to BDCs had made the naira firmer.

Alhaji Aminu Gwadabe, president, ABCON, said this while speaking with newsmen in Lagos.

The ABCON chief congratulated the CBN for its bravery in dealing with the market fundamentals proactively.

He noted that the approval of rate review for BDCs had made the naira firmer against the dollar at the parallel market.

He urged pundits to desist from hoarding, speculation, rent seeking and illegal cash boarder transfers to make the naira stronger against other currencies.

Now with the uniformity in prices, strong fiscal buffers, fiscal discipline, Yuan swap, investors’ confidence, there is no doubt in my mind that the naira is on its journey to sovereignty in Africa,” Gwadabe said.

The CBN reviewed downward the rate to BDCs from N360 to N357 to a dollar in Minday.
 With the review, BDCs are expected to bid for dollars at N357 and sell at N360.

The new policy has crashed the parallel market rate from N365 to a dollar to N360.50 to a dollar.

Gwadabe said the Association was willing to partner the CBN to ensure a single foreign exchange market rate and stability.

He said a single FX market rate would boost investors’ confidence in the market.

ABCON as a stakeholder and an umbrella body of over 3500 licensed BDCs will maintain the tenets of price discovery and transparency in our subsector.

“This is necessary to boost investors’ confidence and general price stability, accessibility of foreign exchange by critical retail end users,’’ Gwadabe said.

Ime N