The Association of Bureau De Change Operators of Nigeria (ABCON) has made a fervent appeal to the Central Bank of Nigeria (CBN) to reconsider its applicable exchange rate, currently set at N1,251 per dollar for BDCs (Bureau De Change).
In a letter addressed to the Director of the CBN's Trade & Exchange Department, Aminu Gwadabe, the National President of ABCON, highlighted the need for a downward adjustment in the exchange rate. This appeal comes in light of the recent appreciation of the Naira, which stood firm at N1,251 against the dollar as of Friday.
ABCON emphasized that the rapid recovery of the Naira has outpaced expectations, rendering the CBN's selling rate to BDCs prohibitively expensive. This situation has prompted retail buyers to seek out undocumented forex operators offering more competitive rates. Expressing further concerns, ABCON noted that many BDCs, despite funding their accounts for dollar allocations, have yet to receive their allocations.
This delay, attributed to scrutinization of documents at designated centers, exposes BDCs to exchange rate risks and significant losses. "We discovered a worrisome development where many of our members who paid for dollar allocations at N1,251 per Dollar with a margin of 1.5 percent are yet to receive their disbursement," stated ABCON. In light of prevailing market conditions, ABCON appealed to the CBN for a downward review of the funding rate from N1,251/$ to align with the current market rate of N1,235 per Dollar. This adjustment, ABCON argues, is essential to enable members to manage their positions effectively.
Furthermore, ABCON urged for the immediate to medium-term automation of payment processes at disbursement centers to facilitate timely payments while ensuring the transaction's spot nature. The appeal from ABCON underscores the challenges faced by BDCs amid the Naira's appreciation and highlights the need for policy adjustments to maintain market stability and support the operations of Bureau De Change operators in Nigeria.
