The Association of Bureaux de Change Operators of Nigeria (ABCON) has expressed its appreciation to the Central Bank of Nigeria (CBN) for the decision to resume dollar sales to Bureaux De Change (BDCs).
According to ABCON President, Dr. Aminu Gwadabe, this initiative has significantly enhanced dollar liquidity within the retail segment of the foreign exchange market.
In a statement issued by Dr. Gwadabe, he highlighted the positive impact of the CBN’s decision on the forex market and attributed it to the monetary policy tightening, interest rate hike, and the clearance of a $7 billion forex backlog in forward commitments.
Also, the recall of BDCs into the mainstream forex market has contributed to increased liquidity and provided a vital exchange rate transmission mechanism.
Dr. Gwadabe emphasized that this strategic move has not only demystified illegal economic behaviors such as hoarding and round-tripping but has also led to exchange rate convergence, fostering stability within the market.
He noted that the exchange rate stability has already begun to translate into tangible benefits for consumers, with a 15% reduction in international school fees, a 20% decrease in the cost of medical tourism, and a 25% dip in airfare prices for both local and international trips.
Describing the ongoing market development as revolutionary, Dr. Gwadabe asserted that a stable naira exchange rate will attract more foreign portfolio inflows, ultimately bolstering Nigeria’s economy.
The success story is further exemplified by the naira trading at N1,255/$ on Saturday, even lower than the advised N1,269.765 rate for BDCs.
The commendation from ABCON underscores the pivotal role played by the CBN in driving positive changes within the forex market, setting the stage for sustained economic growth and stability.