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Dr. Aminu Gwadabe, the President of the Association of Bureau De Change Operators of Nigeria (ABCON), has emphasized the importance of involving Bureau De Change (BDC) operators in the retail segment of the foreign exchange market to achieve a stable, strong, and robust exchange rate in Nigeria. He believes that with the current leadership at the Central Bank of Nigeria, the country has the necessary elements to establish a stable exchange rate and create a highly liquid forex market that supports the domestic economy.
Addressing the challenges facing Nigeria’s forex market and the depreciation of the naira, Gwadabe stressed the need for BDCs to play a more active role in finding lasting solutions to the ongoing exchange rate volatility.
Gwadabe expressed concerns about the continuous depreciation of the naira in both the official and parallel markets, highlighting that it doesn’t benefit BDCs or the domestic economy. He urged for measures to reverse this trend and strengthen the local currency for maximum positive impact on the economy.
The naira recently crossed the N1,100 to the dollar mark in the parallel market, mainly due to persistent dollar scarcity and speculative activities of illegal forex dealers, which also affected the official market.
Gwadabe acknowledged the Central Bank’s efforts to bridge exchange rate gaps and stabilize rates, emphasizing that involving BDCs in the solution will lead to a highly liquid market with stable rates.
He also expressed concerns about market illiquidity, which affects the BDC sector, and the negative image created by unlicensed forex dealers engaged in speculative activities. Although ABCON’s Self-Regulatory Organization status has been suspended, they continue to educate the public against patronizing illegal forex dealers, as direct sanctions are currently challenging.
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