In a bid to address the current market dynamics, the Association of Bureau De Change Operators of Nigeria (ABCON) has urged the Central Bank of Nigeria (CBN) to reevaluate the foreign exchange rate pegged for Bureau De Change Operators (BDCs), which currently stands at N1,251 per dollar.
According to Aminu Gwadabe, the National President of ABCON, the swift appreciation of the Naira to N1,251 per dollar has prompted the association to request a downward review of the exchange rate for FX allocation. The association highlighted concerns over the high selling rate set by the CBN for BDCs, making it challenging to cater to retail customers seeking more affordable rates.
Furthermore, ABCON expressed apprehension over delays in dollar allocations to BDCs, affecting their ability to meet the legitimate demands of clients. The association emphasized the need to mitigate exchange rate risks and substantial losses faced by BDCs due to the current operational challenges.
In a statement, ABCON emphasized the urgency for a downward adjustment in the funding rate from N1,251 per dollar to align with the prevailing open market rate of N1,235 per dollar. The association stressed that such revisions are necessary to enable members to fulfill their obligations effectively and efficiently.
Additionally, ABCON called for the expedited implementation of an automated payment system at disbursement centers to enhance the timeliness and transparency of transactions. The association underscored the importance of streamlining processes to facilitate seamless fund disbursement within the BDC sector.
As market conditions evolve rapidly, ABCON’s appeal for a comprehensive review of the exchange rate system resonates with the ongoing economic dynamics, as the association seeks greater flexibility to navigate the changing landscape of foreign exchange operations.
