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The Association of Bureaux de Change Operators of Nigeria (ABCON) has extended its commendation to the Central Bank of Nigeria (CBN) for its decision to resume dollar sales to Bureaux De Change (BDCs).
Dr. Aminu Gwadabe, President of ABCON, conveyed appreciation to the CBN for this strategic move, citing various factors contributing to enhanced dollar liquidity in the retail segment of the forex market. He highlighted the impact of monetary policy tightening, which resulted in an interest rate hike and increased investments in government instruments, along with the clearance of a $7 billion forex backlog for forward commitments.
Gwadabe emphasized that the reintroduction of BDCs into the mainstream foreign exchange market has played a pivotal role in curbing illicit economic activities such as hoarding, rent-seeking, round-tripping, and speculative FX holding, consequently promoting exchange rate convergence.
Moreover, Gwadabe pointed out the positive effects of exchange rate stability on the prices of goods and services. Notable reductions include a 15% decrease in international school fees, a 20% decline in medical tourism costs, and a 25% drop in airfare prices for both local and international travel.
Highlighting the ongoing market trends, Gwadabe noted that the naira traded at N1,255/$ on Saturday, reflecting a lower rate compared to the advised N1,269.765 rates for BDCs.
Characterizing these market developments as revolutionary, Gwadabe expressed optimism that a stable naira exchange rate would attract increased foreign portfolio inflows into the economy, fostering further economic growth and stability.
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