ABCON hails CBN for dollar sales to BDCs

The Association of Bureaux de Change Operators of Nigeria (ABCON) has praised the Central Bank of Nigeria (CBN) for the resumption of dollar sales to Bureaux De Change (BDCs).

The president of the association, Dr Aminu Gwadabe, stated that aside monetary policy tightening that led to the rise of the interest rate and more investment in government instruments and clearance of $7 billion forex backlog forward commitments, the recall of the BDCs has significantly boost dollar liquidity at the retail end of the forex market.

He therefore expressed ABCON’s gratitude to the central bank and other related agencies for the recognition of BDCs as the third leg of the foreign exchange market and an effective exchange rate transmission mechanism in forex management.

He said: “The reconsideration of the BDCs into the main stream foreign exchange market has not only demystified illegal economic behaviours such as hoarding, rent seeking, round tripping and FX holding position, but also led to the emergence of exchange rate convergence.”

Gwadabe concluded that the stability in exchange rate has already begun to have positive impact on the prices of goods and services.