NAIRAMETRICS
The Association of Bureau De Change Operators of Nigeria (ABCON) has asked the Central Bank of Nigeria (CBN) to allow BDCs to carry out online dollar operations and Point of Sale (POS) agency as part of measures to boost liquidity in the forex market and ensure exchange rate liquidity.
ABCON also urged the apex bank to give regulatory approvals to allow BDCs have access to diaspora remittances, like receiving International Money Transfer Operators (IMTOs) proceeds.
This was made known in a statement issued by the President of ABCON, Aminu Gwadebe, where he noted that full participation of BDCs in the retail segment of the foreign exchange market will help achieve a stable, strong, and virile exchange rate.
Open multiple channels of inflow for diaspora remittances
Gwadabe said that ABCON recommended that the apex bank should approve its overdue request that BDCs be made agents through which over $20 billion annual inflows from the diaspora enter the economy. He noted that securing such regulatory approval will boost dollar liquidity and strengthen the naira.
- He said, “We at ABCON advise that BDCs should be allowed to access dollars or diaspora remittances through the autonomous forex windows like allowing operators to receive IMTOs proceeds, carrying out online dollar operations and Point of Sale (PoS) Agency, among others.’’
Gwadabe said the Diaspora remittances remain a low hanging fruit for the apex bank and tapping the full potentials would require creating multiple channels of inflows to make it easier for Nigerians in diaspora to send funds home.
BDCs must be involved in solving forex crisis
Presenting a pathway to stable exchange, Gwadabe said Nigeria under the current leadership at the CBN, has all it takes to achieve a strong and stable exchange rate and build a highly liquid forex market that supports the domestic economy.
He said the challenges confronting the nation’s forex market and depreciation of the naira require all hands to be on deck, and the BDCs, which are licensed to play at the retail end of the forex market should be fully involved in providing lasting solution to the ongoing volatility in the exchange rate.
Gwadabe said the continuous depreciation of the naira in both official and parallel markets do not benefit the BDCs and the domestic economy, hence steps should be taken to reverse the trend and strengthen the local currency for maximum impact on the economy.
