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The Association of Bureaux de Change Operators of Nigeria (ABCON) has expressed gratitude to the management of the Central Bank of Nigeria and the Central Bank of Nigeria, Dr. Olayemi Cardoso following recent steps taken to gradually restore the value of the naira.
The association lauded the decision of the apex bank to recall Bureaux De Change (BDC) operators into the mainstream FX market as a major factor in ongoing exchange rate stability.
The ABCON President, Dr. Aminu Gwadabe, in a statement released in Lagos, said aside monetary policy tightening that led to interest rate hike and more investment in government instruments and clearance of $7 billion forex backlog forward commitments, the recall of the BDCs has significantly boost dollar liquidity at the retail end of the forex market.
Gwadabe, expressed ABCON’s gratitude to the Cardoso-led CBN and other related agencies for the recognition of BDCs as the third leg of the foreign exchange market and an effective exchange rate transmission mechanism in forex management.
“The reconsideration of the BDCs into the mainstream foreign exchange market has not only demystified illegal economic behaviours such as hoarding, rent seeking, round tripping and FX holding position, but also led to the emergence of exchange rate convergence.”
Gwadabe said that the stability in exchange rate has already started to have positive impact on the prices of goods and services. For instance the price for international school fees has dropped by 15 per cent; cost of medical tourism reduced by 20 per cent and prices of air fares for local and international trips dipped by 25 percent.
