The Association of Bureaux de Change Operators of Nigeria (ABCON), representing CBN-licensed Bureaux de Change (BDCs), has praised the decision of the CBN under Olayemi Cardoso’s leadership to reintegrate BDCs into the mainstream FX market.
In a statement released recently, ABCON President, Dr. Aminu Gwadabe, highlighted the positive impact of recalling BDCs into the market.
He said the decision, along with other measures such as monetary policy tightening and clearing the $7 billion forex backlog, has led to increased dollar liquidity, exchange rate convergence and stability.
Gwadabe expressed gratitude to the CBN and related agencies for recognizing BDCs as a crucial part of the foreign exchange market. He emphasized that this decision has curbed illegal economic activities and led to exchange rate stability, resulting in lower prices for goods and services.
“The stability in exchange rates has already had a positive effect on various sectors, with reductions in international school fees, medical tourism costs, and airfares. This has also boosted public confidence in the local currency and reduced inflation.” He stated.
The naira has appreciated significantly, trading at N1,255/$ on Saturday, lower than the advised rate for BDCs. Gwadabe described this as a revolutionary market trend that will attract more foreign investments to the economy.
He highlighted the promising prospects for forex earnings, with increased foreign portfolio investments and over $1.5 billion inflows following the recent interest rate hike by the Monetary Policy Committee.
ABCON reaffirmed its committed to collaborate with the CBN to ensure a win-win situation for all members and prevent exclusion or dominance by larger players in the sector.
The organization aims to safeguard its members’ investments, skills, and capital while promoting market stability and growth.
Overall, the partnership between BDCs and the CBN has created a sense of calm, confidence, and liquidity in the markets.
ABCON is hoping that the CBN will continue to foster this relationship to sustain the current success and further strengthen the forex market.
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