The Association of Bureaux De Change Operators of Nigeria (ABCON) has appealed to the Central Bank of Nigeria (CBN) to lower its applicable exchange rate, currently pegged at N1,251/$ for its members.
In a letter obtained by The Punch, addressed to the CBN Director, Trade & Exchange Department, ABCON President Aminu Gwadabe highlighted concerns regarding the disparity between the CBN’s set rate and the parallel market rate, which stands at 1,235/$.
Gwadabe expressed worry that the rapid recovery of the naira has made the CBN’s selling rate to BDCs expensive and challenging to sell to retail end buyers, who seek cheaper rates from undocumented forex operators.
Furthermore, he raised alarm over delays in the disbursement of dollar allocations to BDCs, leaving them vulnerable to exchange rate risks and significant losses.
ABCON commended the CBN’s efforts to strengthen the naira but urged a downward review of the funding rate to align with the reality of the current market. They also called for automating payment processes to ensure timely disbursements and effective administration.
The association emphasized that a quick response from the CBN could address the exchange rate disparity and boost confidence among BDC operators, enhancing their participation in the intervention process.
