ASSOCIATION of Bureaux De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to review the exchange rate band at which Bureaux de Change (BDCs) buy dollars to align with commercial banks’ buying rate.
ABCON President, Alhaji Aminu Gwadabe, while speaking to journalists in Lagos ahead of the 261st meeting of the CBN-led Monetary Policy Committee (MPC) scheduled to hold today, said that BDC operators still buy dollars from International Money Transfer Operators (IMTOs) as directed by the CBN at N360/$ and sell at N361.5/$ whereas commercial banks buy at N357/$ and sell at N360/$. He, therefore, urged the CBN to merge the BDCs and bank rates to achieve market harmony and level playing field for all stakeholders.
He said the underlying market intrigues and political anxieties in the country are pointers that the CBN needs to listen to ABCON demand and merge both rates in the interest of the naira and the economy.
Gwadabe said leaving the rates as they are presently does not allow healthy competition between both segments of the market. He added that the ongoing losses being recorded in the equities market where over N700 billion has been lost in recent weeks, as well as speculative tendencies among big foreign exchange players will continue to constitute big threat for exchange rate stability.
According to him, the rising naira liquidity, high demand for dollars in the travel seasons, payment for school fees for students studying abroad and rising forex demand at the retail end of the market remain big concerns for exchange rate stability.