ABCON reiterates commitment to maintaining collaboration with CBN

The Association of Bureau de Change Operators of Nigeria (ABCON) has reiterated its commitment to maintaining collaboration with the Central Bank of Nigeria (CBN) to ensure that all benefits mutually, preventing exclusion and the dominance of the sector by larger entities.

President of ABCON, Aminu Gwadabe, who disclosed this at the weekend, said the recall of his members into the foreign exchange (FX) market has led to stability in the exchange rate.

He thanked the CBN and other relevant agencies for acknowledging the BDCs as a crucial component of the forex market and an efficient mechanism for transmitting exchange rates in forex management.

 “The reconsideration of the BDCs into the mainstream foreign exchange market has not only cleared illegal economic behaviours of hoarding, rent-seeking, round tripping and forex holding position, and led to the emergence of exchange rate convergence,” he said.

Gwadabe said the success story is unending, with the naira trading at N1,255/$ on Saturday — which is below the N1,269.765 the BDCs are advised to sell.

“It is our view that the collaboration between the BDCs, CBN, National Security Adviser (NSA), Economic and Financial Crimes Commission (EFCC), as well as support from the presidency helped in creating the opportunity for building the foundation of this achievement,” he said.

“Overall the combination of these actions have induced an atmosphere of public calmness, confidence, hope and liquidity in the markets. We therefore call on the CBN to continue to calibrate the existing relationship between the BDCs and the apex bank to sustain the success story.”

Describing the ongoing market development as revolutionary, the ABCON president said a stable naira would attract more foreign portfolio inflows to the economy.

He said prospects for forex earnings are promising with an increase in foreign portfolio investments (FPI) and inflows exceeding $1.5 billion just days after the monetary policy committee (MPC) raised interest rates by 200 basis points.