- CBN, ABCON’s Partnership Stabilising Naira – Gwadabe
The President, Association of Bureaux De Change Operators of Nigeria, Alhaji Aminu Gwadabe, has said the ongoing strategic partnership between the Central Bank of Nigeria and the association has kept the naira stable at both the official and parallel markets, despite huge campaign spending by political parties.
He said in a statement that measures initiated by the CBN, including the sustenance of dollar supply to over 4,000 BDC operators across the country through the International Money Transfer Operations foreign exchange window, had helped the status of the naira.
According to the statement, the CBN spot rate closed somewhat flat at N306.75/$1 last week from N306.70/$1 in the prior week.
It added that the exchange rate at the Investors and Exporters forex window closed at N364.70/$1, while the naira traded at N363/$1 throughout the week at the parallel market and BDCs.
Gwadabe said, “The naira remains stable despite political parties’ campaign spending across the nation. The strategic partnership and actions of the Central Bank of Nigeria and the Association of Bureaux De Change Operators of Nigeria have stopped distortions to the exchange rate due to ongoing politicking and campaign spending in the country.”
He added that the determination of the apex bank to maintain the IMTOs forex window for the BDCs on a weekly basis had brought steady liquidity into the market and discouraged unethical market behaviours like hoarding, speculation and frivolous demand.
He stated that ABCON had ensured that its members continue to make dollar accessible to critical end-users like travelers demanding personal and business travel allowances, school fees and medical bills payment abroad, among others.
Gwadabe said the ongoing ABCON automation and configuration of soft token for forex return rendition by BDCs nationwide would enhance transparency and financial integrity of the operators.
“This feat will no doubt strengthen the effectiveness of the technical compliance with the anti-money laundering and counter-terrorism financing laws and help Nigeria’s assessment into the Financial Action Task Force coming up next year,” he added.
The ABCON boss stated that increased surveillance by the security agencies on illicit financial flow and controls at the nation’s borders had enhanced the stability in the market.
According to him, the secondary market currently enjoys huge confidence, making it difficult for forex speculators and illegal forex dealers to manipulate the market.
Gwadabe said the operations of IMTOs were part of the efforts by the CBN to liberalise the forex market, boost liquidity and make dollar more readily available to low end-users.