BDC operators call for intervention in forex crisis

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The Association of Bureau de Change Operators of Nigeria has sought support from the Central Bank of Nigeria to ensure that Bureau de Change operators continue to sell dollars to end users.

In a notice to its members nationwide, ABCON’s National Executive Board called on the regulator to review the halt in dollar sales to BDCs to bring lasting stability to the naira.

The group disagreed with claims that the naira remained largely stable and convergent after the BDC dollar allocation was halted.

According to ABCON NEC, BDCs remain the CBN’s most powerful tool to achieve its exchange rate management.

He said: “Our position with CBN is that our members should be factored into any end-user dollar supply mechanism as is done in other countries instead of outright withdrawal. of the market.

“We therefore reject claims that the naira exchange rate has improved following the halt in dollar sales to BDCs and urge our members to disregard such claims.”

The ABCON NEC said it would continue to take action to ensure that its members’ businesses are restored and that operators continue their legitimate operations as is done in other parts of the world.

He said: “We excos are not sleeping on our responsibility to ensure that our members’ businesses are supported.

“We therefore call on all our members to continue to ignore the statements against BDCs and to continue to provide us with the support necessary to ensure that the market returns to normal.”

He added that ABCON management would continue its collaboration, lobbying, media campaign and stakeholder engagements to ensure that BDC operators receive the support and opportunity to thrive as they do in several other economies around the world.

He said, “The naira is trading at N416.25/$ in the official market. However, in the parallel market, where the majority of forex comes from manufacturers and retail end-users, the naira is trading at N587/$, which is over N170 premium between the two markets.

He added, “It is on records that the halt in BDC currency sales has not only created higher demand pressure, but has also rendered the value of our national currency useless.”

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