The Association of Bureaux De Change Operators of Nigeria (ABCON) has urged the Central Bank of Nigeria (CBN) to adjust and lower its applicable exchange rate, currently set at N1,251/$, below the prevailing parallel market rate of 1,235/$.
In a letter addressed to the CBN Director, Trade & Exchange Department, ABCON National President, Aminu Gwadabe, expressed concerns about the difficulty faced by BDCs in offloading CBN-sourced dollars to retail end buyers due to the higher selling rate. Gwadabe highlighted that the naira’s swift recovery has made the CBN’s selling rate to BDCs expensive compared to rates offered by undocumented forex operators.
Furthermore, Gwadabe lamented that many BDCs, despite funding their accounts for dollar allocations, have yet to receive their allocations due to prolonged scrutiny of documents at designated centers. This delay occurs despite the prevailing open market rate being lower than the authorized applicable exchange rate set by the CBN.
Despite these challenges, ABCON commended the CBN’s efforts to restore the naira’s strength against the dollar and other global currencies. Gwadabe emphasized ABCON’s commitment to collaborating with the CBN to achieve exchange rate stability and economic growth objectives.
ABCON called for a downward review of the funding rate of the last tranche to reflect the current market rate discovery. They also urged the CBN to automate the payment process at disbursement centers to enhance timely payments while suggesting the introduction of a cut-off time for bid payments and collections to improve administration and control.
In conclusion, ABCON emphasized the importance of a quick and decisive response from the CBN to address the exchange rate disparity, which would boost BDC operators’ confidence and enhance their participation in the bidding process.
