The Association of Bureau De Change Operators of Nigeria (ABCON) has made an emotional plea to the Central Bank of Nigeria (CBN) to grant permission for Bureau De Change operators (BDCs) to engage in online dollar transactions and provide Point of Sale (POS) agency services. ABCON believes these measures could significantly enhance liquidity in the forex market and play a crucial role in stabilizing exchange rates.
ABCON has also urged the CBN to expedite the process of regulatory approvals that would enable BDCs to access diaspora remittances, including the receipt of proceeds from International Money Transfer Operators (IMTOs).
Aminu Gwadebe, the President of ABCON, underscored the importance of BDCs’ full participation in the retail segment of the foreign exchange market. He emphasized, “We at ABCON advise that BDCs should be allowed to access dollars or diaspora remittances through the autonomous forex windows, such as permitting operators to receive IMTOs’ proceeds, engage in online dollar operations, and offer Point of Sale (PoS) Agency services, among other possibilities.”
Gwadebe further highlighted that diaspora remittances represent a significant opportunity for the CBN. To harness this potential fully, it is imperative to establish multiple channels for inflows, simplifying the process for Nigerians in the diaspora to send funds back to their home country.
The involvement of BDCs is seen as a critical step in resolving the forex crisis and achieving exchange rate stability. Gwadebe believes that Nigeria has the potential to attain a strong and stable exchange rate and create a highly liquid forex market that can bolster the domestic economy.
The ongoing naira depreciation in official and parallel markets has adverse implications for BDCs and the domestic economy. As such, measures must be implemented to reverse this trend and strengthen the local currency for maximum positive economic impact.
Gwadebe acknowledged the CBN’s efforts in bridging exchange rate gaps, signalling the regulator’s genuine commitment to achieving exchange rate stability. However, he maintains that involving BDCs in the solution could lead to a highly liquid market and more stable exchange rates.
One of the key concerns in the forex market is the issue of illiquidity. Additionally, ABCON has expressed dissatisfaction with unlicensed forex dealers engaging in speculative activities, tarnishing the sub-sector’s reputation. ABCON has been actively educating the public about the risks of dealing with illegal forex dealers and is urging the prompt and stringent enforcement of regulatory sanctions against non-compliance to deter others.
In conclusion, ABCON’s recommendations are geared towards strengthening the role of BDCs in the Nigerian forex market and making substantial contributions to exchange rate stability, liquidity, and efficient handling of diaspora remittances. These steps could potentially mark a significant stride toward economic stability and growth.
