The Association of Bureaux De Change Operators of Nigeria (ABCON), representing all Central Bank of Nigeria (CBN)-licensed Bureaux De Change (BDCs), has urged the apex bank to review its exchange rate downwards, citing the recent drop below the N1,251/$ benchmark.
This call follows the naira’s resurgence, which has led to the official rate falling below the parallel market rate for the first time in 15 years.
Recent data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) indicates that the dollar closed at N1,251.05 at the end of last week, aligning with the rate at which the CBN sells to BDCs.
However, unregistered BDC operators in Lagos reportedly purchased dollars at around N1,200 over the weekend, highlighting the disparity between official and informal market rates.
ABCON emphasized that the rapid appreciation of the naira has rendered the CBN’s selling rate to BDCs expensive and challenging to offload to retail buyers, who increasingly turn to informal forex operators for more favorable rates.
In a letter penned by its National President, Alhaji (Dr) Aminu Gwadabe, and addressed to the CBN’s Director of Trade and Exchange, ABCON lamented that many BDCs, despite funding their accounts for dollar allocation, are yet to receive their share to meet client demands.
The association underscored that as the naira strengthens across markets, BDCs face the risk of significant income and capital loss if they sell at the prevailing open market rate of N1,235/$.
ABCON expressed concern that the current market reality could compel BDCs to sell below cost price, contradicting recent market price discovery efforts and undermining their financial viability.
The association urged the CBN to consider the challenges faced by BDCs and adjust the exchange rate to reflect the evolving market dynamics, ensuring a fair and sustainable operating environment for all stakeholders.
