‘It’ll eliminate speculation’ — ABCON hails CBN for approving interbank FX sale to BDCs

The Association of Bureaux De Change Operators of Nigeria (ABCON) has praised the Central Bank of Nigeria (CBN) for approving the sale of interbank foreign exchange (FX) to its members.

On Thursday, the CBN said it had granted eligible bureau de change (BDC) operators temporary access to the Nigerian Autonomous Foreign Exchange Market (NAFEM) to purchase $25,000 weekly from banks between December 19 and January 30.

Following the announcement, Aminu Gwadabe, ABCON’s president, in a statement on Friday, said ABCON’s members are delighted that the CBN has allowed their accessibility to the new electronic foreign exchange matching system (EFEMS) market through the banks.

Gwadabe said the initiative will improve compliance with obligations to security and monetary agencies.

“As contained in the circular, the purpose is to meet the critical retail end needs of the market where the BDCs have significantly played a potent and effective transmission monetary mechanism of the central bank policies,” the president said.

“The benefits to be achieved in the implementation of this circular includes and not limited to liquidity injection in the retail end and enhancing price discovery where volatility is pervasive, stable exchange rates, eliminate or reduce illegal economic behaviours like speculation and currency substitution in the economy.

“Other benefits includes job creation, data generation, lower inflationary rate and improving the fragile security situation.

“To our members it will revitalize our operations, making us functional and profitable.”

The president urged members of ABCON to act within the directives in the circular and ensure the desired result of the appreciation of the local currency is achieved.

He also advised ABCON members to render their returns regularly, operate inside their offices, and ensure seamless automation of their processes.

In addition, Gwadabe advised the banks to ensure transparency and a level playing field in the discharge of their responsibilities to members nationwide.