Why BDCs are central to CBN’s exchange rate policies — ABCON

The Association of Bureaux De Change of Nigeria (ABCON) has said the Bureaux De Change (BDCs) are at the centre of Central Bank of Nigeria (CBN’s) exchange rate policies, ABCON has said.

The ABCON President, Aminu Gwadabe, who disclosed this at a media briefing in Lagos, also said the apex bank has maintained the suspension of forex sales to the BDCs does not lead to revocation of licenses as the operators are still under the purview of CBN regulations.

According to him because of the importance of the BDCs which are small retail forex institutions, the CBN and the public should continuously support them to achieve exchange rate stability.

This, he added, can be achieved through increased automation of their processes and providing more channels of transactions for sustainable price equilibrium while eradicating rent seeking, currency substitution and speculation.

According to him, the CBN Governor, Godwin Emefiele had tried to introduce many policies beyond conventional money supply that are not in line with market realities.

He cited the Naira-4-Dollar scheme of N5 bonus for every $1 diaspora remittances as well as the N65 rebate for every dollar of non-oil export proceeds and other incentives as commendable, but require total overhaul with stakeholders’ engagement.

“I am not a prophet of doom and student of continuing naira depreciation but except fundamental goodwill and courage is demonstrated, the naira will continue to suffer loss in exchange for the greenbacks,” Gwadabe maintained.