ABCON president confirms BDCs purchasing dollars at N980/$, naira appreciating beyond expectations

In a recent revelation by the Association of Bureau De Change Operators of Nigeria (ABCON), the exchange rate dynamics have taken a surprising turn. According to ABCON President Aminu Gwadebe, as of Tuesday, BDC operators were purchasing dollars at N980/$ in the open market and selling at N1,020/$, showcasing a notable shift in the forex landscape.

Gwadebe, speaking on the Channels Television programme “Business Incorporated,” expressed his astonishment at the rapid appreciation of the naira against the United States Dollar. He commended both the government and the Central Bank of Nigeria for their concerted efforts, marking this as a significant milestone. Remarkably, this marks the first instance in the past 15 years where the exchange rate for the dollar in the parallel market is lower than the official window rate.

The atmosphere in the market has notably calmed down, with speculation, previously a major destabilizing force, dissipating. This newfound stability bodes well for the Nigerian economy, offering a glimmer of hope amidst recent challenges.

When asked how much the naira is now trading against the US dollar, Gwadebe said,

• ‘’Our quote rate we buy at N980 and we sell at N1,020 as at now.’’

On what was responsible for the continuous appreciation of the naira, he said,

• ‘’Well, it’s a long journey, it did not start today, there are many factors, a combination of those factors that helped in achieving this, even though it happened faster than expected. So, I want to congratulate the management of the Central Bank for the first time in history over the past 15 years we have never seen where the open market is lower than the CBN rate.
• ‘’So, kudos to the Central Bank, and congratulations Nigerians, there is calmness now, we have not been seeing speculation coming into the market which hitherto has been one of the albatross that is keeping the naira under pressure.
• ‘’What you are seeing now is to show that what happened before has no any economic fundamental, it’s just a bubble and the bubble has burst.
• ‘’So, this happened with some stringent concerted policies, stress test policies that started with the unification of the market, it came with a mixture of feelings, a lot of disequilibrium, however, it has finally achieved its objectives of convergence. All is to converge the exchange rate so that we can have a single market, so congratulations to the presidency also for achieving this fiat convergence.’’