The Association of Bureaux De Change of Nigeria (ABCON) has said the Bureaux De Change (BDCs) are at the centre of the Central Bank of Nigeria’s (CBN) exchange rate policies.
The ABCON president, Aminu Gwadabe, who disclosed this at a media briefing in Lagos, said although the apex bank has maintained the suspension of forex sales to the BDCs, it does not lead to the revocation of licences as the operators are still under the purview of CBN regulations.
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Gwadabe said the small retail exchange institutions–BDCs –remain at the centre of the CBN’s exchange rate policy implementation, hence the need for the regulator and public to continuously support BDCs’ roles in exchange rate stability.
This, he added, can be achieved through increased automation of their processes and by providing more channels of transactions for sustainable price equilibrium while eradicating rent-seeking, currency substitution, and speculation.
“I am very confident that Nigeria will in the not too distant future appreciate a stable exchange rate and the availability of forex in the local economy as long as the right people for government policies’ implementation get such responsibility,” he stated.
According to him, the CBN Governor, Godwin Emefiele, had tried to introduce many policies beyond conventional money supply that were not in line with market realities.
Gwadabe cited the Naira-4-Dollar scheme of N5 bonus for every $1 diaspora remittances as well as the N65 rebate for every dollar of non-oil export proceeds and other incentives as commendable, but that requires total overhaul with stakeholders’ engagement.
“I am not a prophet of doom or student of continuing naira depreciation, but unless fundamental goodwill and courage are demonstrated, the naira will continue to suffer loss in exchange for the greenbacks,” Gwadabe maintained.
According to him, an average BDC operator licenced by CBN is comatose and heading for extinction.
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