The Association of Bureau De Change Operators of Nigeria (ABCON) is urging the Central Bank of Nigeria (CBN) to lower the exchange rate set at N1,251 per dollar for BDCs. In a letter to the CBN Director of Trade & Exchange Department, ABCON President Aminu Gwadabe expressed concerns about the high selling rate set by the CBN, which is becoming increasingly difficult for BDCs to offload to retail buyers seeking cheaper rates.
Despite the CBN’s efforts to boost FX liquidity by providing $10,000 to each BDC at the fixed rate, the rapid appreciation of the Naira has made the rate uncompetitive. Many BDCs are struggling to receive their dollar allocations, putting them at risk of exchange rate fluctuations and financial losses.
ABCON is calling for a downward review of the funding rate to align with the current market rate of N1,235 per dollar. The association emphasizes the need for timely payments and automation of the disbursement process to meet the demands of their clients and ensure financial stability for BDCs.
As the Naira continues to strengthen, ABCON is advocating for a more flexible exchange rate policy to support the operations of BDCs and meet the growing demand for foreign exchange in Nigeria. By addressing these concerns, the CBN can help stabilize the forex market and ensure a more efficient allocation of resources for businesses and individuals alike.
