- BDCs Outline Ways CBN Can Sustain Naira Recovery
The Association of Bureaux De Change Operators of Nigeria has advised the Central Bank of Nigeria on immediate steps to be taken to ensure that the ongoing recovery of the naira against the United States dollar is sustained.
In a statement on Sunday, the ABCON President, Aminu Gwadade, said the CBN should review the BDCs dollar buying rate downwards from N360 to N350/$1 and enhance security surveillance at the country’s boarders in order to tackle possible illegal cash movement.
According to Gwadabe, the standard/average trade margin for the BDCs across the world is 12 per cent and reviewing the rate to N350/$1 is less than three per cent for Nigerian operators.
The statement read in part, “The CBN should be proactive enough to quickly review the BDC buying rate so as to bring the foreign exchange transfer rate down and boost market stability. The BDC rate should be brought down to N350/$1 for now and see the positive impact on the local currency.”
“The downward review of the BDCs rate is critical at present, as it will keep the BDCs afloat to meet increasing forex demand at the retail end of the market. For now, the parallel market operators are taking over our business because the BDCs rates and their selling rates are the same and this has to change.”
The ABCON leader also said there was the need for the CBN to increase the volume of Personal Travel Allowances from $4,000 to $8,000; Business Travel Allowances from $5,000 to $10,000; school fees from $5,000 to $20,000 and medicals from $5,000 to $15,000 quarterly to deepen liquidity in the market.