BDCs back CBN, says allegation of exchange rate racketeering uncharitable

The Association of Bureaux De Change Operators of Nigeria (ABCON) has described as unfounded and uncharitable a media report which alleged that the Central Bank of Nigeria (CBN) was involved in forex racketeering.

The report titled: “Exposed The Sleazy Face of N306/$, inside Nigeria’s racket where faceless agents pocket over N32bn annually” was published by a newspaper (not Daily Trust).

ABCON’s chairman, Alhaji Aminu Gwadabe, made the remark at the ABCON live run automation project launch in Lagos on Tuesday afternoon.

Gwadabe said: “The N306/$1 is only used for the payment of debt and a few critical infrastructure like the refinery and we know these things.

“It is an unfounded and uncharitable allegation because, Why would the CBN source funds at N358/$1 and then sell same for N306/$1? And to a faceless group for that matter.”

He said the Naira has been stable at both the official and parallel markets despite huge campaign spending by political parties.

Gwadabe linked the stability of the local currency to measures instituted by CBN and the ABCON to ensure that foreign exchange demand at the retail end of the market was met.

He said: “Such measures initiated by the CBN include the sustenance of dollar supply  to over 4,100 Bureau De Change (BDC) operators across the country through the International Money Transfer Operations (IMTOs) forex window has helped the status of the local currency.

“The Naira remains stable despite political parties’ campaigns and spending across the nation. The strategic partnership, actions and pre-actions of the CBN and ABCON have stopped distortions to the exchange rate due to ongoing politicking and campaign spending in the country.”