In a recent statement released on Saturday, Aminu Gwadebe, President of the Association of Bureaux de Change Operators of Nigeria (ABCON), credited the recovery of the naira for a relative decrease in the prices of goods and services across the country.
Gwadebe commended the Central Bank of Nigeria (CBN) for its decision to permit Bureaux de Change to operate in the foreign currency market, citing it as a pivotal factor in the naira’s resurgence. The CBN’s move marks a reversal from the ban on BDC operations imposed in July 2001 as part of efforts to stabilize the local currency.
ABCON has long advocated for the formal integration of BDCs into the currency market, and the apex bank’s decision to reinstate them in February has had tangible effects.
Gwadebe highlighted the positive impact of increased dollar liquidity at the retail end of the forex market, attributing it to the resurgence of BDCs.
The statement underlined how the reintroduction of BDCs has curbed inflation and restored confidence in the local currency, eliminating illicit economic practices such as hoarding and round-tripping.
Furthermore, Gwadebe noted a significant drop in the prices of essential services, including a 15% decrease in international school fees, a 20% reduction in medical tourism costs, and a 25% dip in airfare prices for local and international travel.
With the naira trading at 1,255/$, below the advised rate of 1,269.77/$ for BDCs, Gwadebe hailed the ongoing market developments as revolutionary, predicting that a stable naira would attract more foreign portfolio investments.
Gwadebe praised the collaborative efforts between BDCs, the CBN, and other relevant authorities, attributing their cooperation to the current success. Looking ahead, he urged the CBN to maintain its relationship with BDCs to sustain the positive momentum.
He emphasized the need for continued cooperation and support from all stakeholders to uphold the achievements in stabilizing the forex market and boosting economic confidence.
