The Association of Bureaux De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to adjust its exchange rate downward, citing disparities between prevailing market rates and rates set for BDCs.
In a letter addressed to the CBN Director of Trade & Exchange Department and obtained by The PUNCH, ABCON National President, Aminu Gwadabe, expressed concerns over the current exchange rate dynamics.
Gwadabe highlighted that while the CBN’s prescribed rate for BDCs stands at N1,251/$ (plus a 1.5 per cent margin), the parallel market rate hovers at 1,235/$. This discrepancy, he noted, poses challenges for BDCs in offloading currencies to retail buyers who seek cheaper rates from informal forex operators.
Furthermore, Gwadabe pointed out delays in disbursing dollar allocations to BDCs, leaving them exposed to exchange rate risks and potential losses.
ABCON commended the CBN for recalling BDCs into the official FX window and acknowledged efforts to strengthen the naira against global currencies. However, it emphasized the need for rate adjustments to align with market realities.
The association urged the CBN to review the funding rate downward to reflect current market rates, facilitating smoother operations for BDCs and enhancing their ability to meet market demand.
Additionally, ABCON called for improvements in the payment process at disbursement centers, advocating for medium-term automation to ensure timely payments and streamline transaction administration.
To address exchange rate disparities and bolster confidence among BDC operators, ABCON emphasized the importance of a swift response from the CBN, aligning intervention strategies with market dynamics to support the stability of the exchange rate and foster economic growth.
