LAGOS/Nigeria: The Association of Bureaux De Change Operators of Nigeria (ABCON) has made a fervent appeal to the Central Bank of Nigeria (CBN) to reconsider and decrease its exchange rate, currently pegged at N1,251/$ for BDCs. This plea arises amidst a historic moment where unofficial market rates have dipped below the official rate for the first time in 15 years, registering at N1,235/$.
In a letter addressed to the Director of the CBN’s Trade & Exchange Department and signed by ABCON’s National President, Aminu Gwadabe, the association expressed deep concerns regarding the rapid recovery of the Naira, which has rendered the CBN’s selling rate to BDCs prohibitively expensive. This situation has led to a surge in retail buyers turning to undocumented forex operators for cheaper rates, bypassing BDCs altogether.
ABCON highlighted the plight of many BDCs who, despite funding their accounts for dollar allocations, have yet to receive their allocations due to rigorous scrutiny of documentation at designated centers. This delay exposes BDCs to exchange rate risks and substantial losses.
With the Naira appreciating across markets, BDCs who purchased dollars at N1,251/$ now face the prospect of significant income and capital losses if they sell at the prevailing open market rate of N1,235/$.
ABCON commended the CBN’s initiative to recall BDCs into the official FX window and its efforts to bolster the Naira against global currencies. However, it emphasized the urgent need for a downward review of the applicable exchange rate to align with market realities, ensuring BDCs can fulfill their critical role in the economy.
The association called for prompt automation of payment processes at disbursement centers to facilitate timely payments and requested refunds for members who funded their accounts but are yet to receive disbursements. Additionally, ABCON urged the CBN to introduce a cut-off time for payments and bid collections to streamline the bidding process and enhance control.
In conclusion, ABCON stressed that the disparity in exchange rates could be mitigated through swift action by the CBN, fostering confidence among BDC operators and bolstering their participation in intervention efforts.
