BDCs Urge FG to Harmonise Multiple Exchange Rates

Nume Ekeghe

The Association of Bureaux De Change Operators of Nigeria (ABCON) has urged Central Bank of Nigeria (CBN) and the federal government to harmonise the multiple exchange rates in the country.

Also in its bid to create awareness, promote consistency and support the CBN towards achieving exchange rate stability, the association launched an official BDC exchange rate portal.

The website was unveiled at a media parley in Lagos yesterday. The association also maintained that it’s official exchange rate is $399/$.

Speaking at the parley, acting President of ABCON, Alhaji Aminu Gwadabe said: “We urge the regulators and the government to harmonize the multiple exchange rates that pervaded the 2016 fiscal year. We also use this medium to appeal to members of the print and electronic media to adopt a single foreign exchange market rate system in their reporting and completely disregard the rates in the parallel market as it is small in volume, cash base and not recognized by enabling law.”

He further said the association would continue to collaborate with CBN to improve the forex crisis.
He said: “ABCON believes that despite the challenges facing the economy, the CBN and BDCs will continue to work together and find sustainable solutions that can help the country wriggle out of the ongoing forex crisis and achieve full economic recovery.

“We have continuously assured the CBN and taken appropriate measures to ensure that purchased funds are disbursed to end users and for eligible transactions only. We also render weekly returns on purchases from the banks to Trade and Exchange Department of the apex bank. We also ensure strict compliance to the provisions of the anti-money laundering laws observance of appropriate Know Your Customer principles in the handling of forex transactions.”
Furthermore Gwabade added: “The foreign exchange market in Nigeria is of great concern, because there is a lot of volatility in the market. We witnessed several circulars from the Central Bank of Nigeria (CBN) on the need to provide necessary solutions that would make the naira to rebound. If you do not forget, the volatility started over a year ago, and we have witnessed several policies from the CBN, trying to ensure that the market remains stable.”
On the outlook for 2017, he explained: “The outlook for 2017 is bright and promising. Already we have prices of crude oil going up and translating to better foreign reserve and fiscal buffers that will enhance liquidity and growing investors’ confidence in the FX market. Furthermore, this development will lead to a bridge of the gap between the parallel market and the official market.”