The Association of Bureau De Change Operators of Nigeria (ABCON) has urged the Central Bank of Nigeria (CBN) to reconsider and decrease its applicable exchange rate, currently set at N1,251/$ for Bureau De Change (BDC) operators. This appeal comes as the naira’s rapid appreciation has made the CBN’s selling rate to BDCs costly and challenging to offload to retail end buyers.
In a letter addressed to the Director of the Trade and Exchange Department and signed by ABCON President Aminu Gwadabe, the association highlighted concerns about BDCs facing losses due to delays in receiving dollar allocations to meet their clients’ legitimate demands. Many BDCs, having funded their accounts for dollar allocations at the CBN’s rate of N1,251/$, are yet to receive disbursements, leaving them vulnerable to exchange rate risks and significant losses.
ABCON emphasized the disparity between the CBN’s authorized rate and the prevailing open market rate of N1,235/$, which puts BDCs at a disadvantage. The association stressed the need for a downward review of the applicable exchange rate to mitigate losses and ensure market competitiveness.
Despite these challenges, ABCON commended the CBN’s efforts to bolster the naira’s strength and restore stability in the foreign exchange market. The association expressed confidence in the market’s ability to self-correct, predicting further appreciation of the naira across all markets with increased foreign exchange inflows.
ABCON also made several requests to improve the efficiency of the BDC operations, including the automation of payment processes, refunds for members yet to receive disbursements, and the introduction of a cut-off time for bid payments and collections.
ABCON urged the CBN to swiftly address the exchange rate disparity to boost BDC operators’ confidence and enhance their participation in the foreign exchange market intervention efforts.
