N900/$ : BDC Operators Send Important Message to CBN

N900/$ : BDC Operators Send Important Message to CBN

The Association of Bureau de Change Operators of Nigeria (ABCON) has directed a significant plea towards the Central Bank of Nigeria (CBN), seeking measures to address the depreciation of the national currency, the naira. In light of recent positive gains against the US dollar in unofficial markets, ABCON President Aminu Gwadebe engaged with LegitNg to outline pivotal steps required to regain naira’s lost value.

In a bid to alleviate the pressure on the naira, ABCON President Aminu Gwadebe conveyed a suggestion to the CBN for the sale of forex to bureau de change operators. Gwadebe emphasized the potential of BDCs to contribute substantially to CBN’s monetary policies and efforts aimed at stabilizing the foreign exchange market. The recent move by CBN to exclude BDCs from accessing foreign exchange at the Investors and Exporters (I&E) window, the official forex market, was reported earlier. Aminu Gwadebe underlined the indispensable role of BDCs in the forex exchange landscape and emphasized that their reinstatement would aid in curbing the influence of speculators.

Gwadebe pinpointed the underlying reason behind the naira’s volatility, attributing it not to the acquisition of dollars, but rather to corruption that thrives on distortions in the forex market. As the advocacy for a more stable forex environment takes shape, BDC operators have voiced their concerns amidst notable recovery of the naira against the US dollar in informal markets.

The resurgence of the naira against the US dollar was evident in the peer-to-peer markets, frequently frequented by cryptocurrency traders. Concurrently, street-level transactions in the black market added to the narrative of the naira’s noteworthy gains.

Amid these developments, the acting Governor of the Central Bank of Nigeria, Folashodun Shonubi, issued a warning on August 14, 2023, directed at speculators who were hoarding US dollars to artificially create scarcity. The impact of this cautionary stance became evident as customers who had stockpiled foreign currency in anticipation of a further decline in the local currency rushed to engage in panic selling on Wednesday.