The President of the Association of Bureau De Change Operators of Nigeria, Dr. Aminu Gwadabe, asserts that full engagement of Bureaux De Change operators in the retail sector of the foreign currency market is necessary for Nigeria to achieve a stable, robust, and fertile exchange rate.
He claimed in a statement that under the Central Bank of Nigeria’s current management, the country has everything it needs to establish a robust and stable exchange rate and create a highly liquid forex market that supports the local economy.
He commented on the difficulties the country’s forex market was facing and the naira’s depreciation, saying that the BDCs needed to be actively involved in finding long-term solutions to the continuous instability in the exchange.
According to Gwadabe, the ongoing depreciation of the naira in both official and unofficial markets did not assist BDCs or the home economy, and actions should be done to halt the trend and strengthen the local currency for the greatest economic impact.
In spite of ongoing dollar shortages and speculative operations by illicit currency traders, the naira on Tuesday crossed the N1,100 to the dollar threshold at the parallel market, according to the statement.
He claimed that the regulator’s numerous efforts to close exchange rate gaps showed sincere attempts to maintain exchange rate stability, but that involving BDCs in the recipe for solution would result in the intended outcomes of not only a highly liquid market but stable rates.
According to Gwadabe, the BDC sector, like every other market segment, continues to have serious concerns about the market’s illiquidity.
In addition to the market’s lack of liquidity, he claimed that the ABCON is unhappy with the unregistered forex traders who were at the core of speculative operations and brought a bad reputation to the industry.
He claimed that due to the suspension of ABCON’s status as a self-regulating organization, the organization was only able to continue to educate the public about the dangers of doing business with illegal currency dealers.
