The Association of Bureaux De Change Operators of Nigeria (ABCON) has said that enforcement of the regulatory sanctions against non- compliance with Central Bank of Nigeria (CBN) forex guidelines will serve as a deterrent to other operators.
The President of ABCON, Alhaji (Dr) Aminu Gwadabe, who made this statement in Lagos while stating a pathway to stable exchange rate said apex bank guidelines are expected to be prompt and stiff against erring members as warning to others.
He said other issues around training for BDCs operators and stronger regulatory oversights are key in getting the BDC sub-sector to position of strength and maximum value addition to the Nigerian forex market. “We therefore advise our members to avoid currency substitution, speculation as erring operators risk heavy loses from any illegal economic behaviour.
He said the several measures by the apex bank to bridge exchange rate gaps showed genuine intentions of the regulator to entrench exchange rate stability, but getting the BDCs involved in the solution recipe will bring the desired results of not only a highly liquid market, but stable rates.
Gwadabe said that like every other segment of the market, the illiquidity in the market remains a major concern to the BDC sector.
He said aside illiquidity in the market, the ABCON is not happy with the unlicensed forex dealers who are at the centre of speculative activities, and attracting negative image to the sub-sector.
He said ABCON can only continue to educate the general public against patronizing the illegal forex dealers because the suspension of the Self-Regulatory Organization status of ABCON makes it difficult for the group to directly sanction the illegal operators.
On recapitalisation of BDCs, Gwadabe said BDCs business is not capital intensive as they do not take deposits or lend funds to customers. The operators are licensed to buy and sell forex at the retail end of the market to buyers, who already have their funds ready for the transaction.
