The Association of Bureaux De Change Operators of Nigeria (ABCON) has made a formal appeal to the Central Bank of Nigeria (CBN) to reconsider and lower its prescribed exchange rate, currently set at N1,251 per US dollar, for its members.
Aminu Gwadabe, the National President of ABCON, conveyed this request in a letter addressed to the Director of the CBN’s Trade & Exchange Department.
The appeal arises from the observation that the parallel market rate, standing at 1,235 Naira per US dollar, is lower than the official buying rate of 1,251 Naira per US dollar (plus a 1.5 percent margin) designated by the CBN in its recent intervention measures.
Gwadabe expressed concern that the rapid appreciation of the Naira has rendered the CBN’s selling rate to Bureaux De Change (BDCs) prohibitively expensive and challenging to sell to retail customers, who are turning to unregistered forex operators for more favorable rates.
Moreover, he highlighted the plight of many BDCs who, despite having paid for dollar allocations at the official rate, are yet to receive their allocations due to extensive scrutiny of documents at designated collection centers. This delay, he argued, exposes BDCs to exchange rate risks and potential losses.
ABCON commended the CBN for its efforts in recalling BDCs to the official FX window and implementing measures to strengthen the Naira against foreign currencies. Gwadabe emphasised the swift positive impact of these efforts on the Naira’s value, expressing ABCON’s commitment to collaborate with the CBN in achieving exchange rate stability and economic growth objectives.
Furthermore, ABCON called for a downward review of the funding rate from the last tranche (2nd bidding) of N1,251 per US dollar to align with current market rates, facilitating BDCs’ ability to adjust their holdings accordingly.
Additionally, the association advocated for the automation of payment processes at disbursement centers to ensure timely transactions, suggesting the introduction of a cut-off time for payments and bid collections to enhance administrative efficiency and control.
ABCON stressed that addressing the exchange rate disparity promptly and decisively would boost confidence among BDC operators in the CBN’s intervention efforts and encourage greater participation in the bidding process.
The association’s appeal underscores the ongoing dialogue between financial stakeholders and regulatory authorities to navigate currency dynamics and maintain stability in Nigeria’s foreign exchange market.
