A recent revelation by the President of the Association of Bureaux De Change of Nigeria (ABCON), Mr. Aminu Gwadabe, has shown that 60 percent of all the transactions carried out yearly at the Bureaux De Change (BDC) section of the Nigerian foreign exchange are done by Fidelity Bank.
Mr. Aminu Gwadabe, “The BDC does about N1.4 trillion per annum [and] Fidelity Bank controls 60 percent of these transactions in the country.”
ABCON President further stated that most of his 5,000 member association deals with Fidelity Bank, helping to boost the bank’s market share in BDC transactions.
The Central Bank of Nigeria (CBN) continues to work hard to break the monopoly and converge foreign exchange rates in line with global practice. However, certain activities in the foreign exchange section continue to drag on forex liberalisation and impede accessibility by importers and businesses looking to import raw materials.
Nigerian Naira plunged to N475 against the United States Dollar and traded at N652 against the British Pound and N570 against Euro at the BDC section of the foreign exchange market today.
While at the parallel market, it traded at even a better rate of N473 to a United States Dollar when compared with the Central Bank of Nigeria’s supposed regulated section of the forex, BDC. The British Pound and Euro traded at the same rates as the black market.
This is despite the central bank adjusting its remittance policy to ensure dollar availability and reduce scarcity.