President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, has called on the Central Bank of Nigeria (CBN) to harmonise the rate at which it sells FOREX to commercial banks and its members. Gwadabe, who said this yesterday in Lagos, noted that many BDCs have been forced to boycott the CBN window due to disparity between the rates. According to him, the CBN sells Forex to banks at N357 per dollar, while banks are expected to sell at N360, on the other hand BDCs buy at N360 from the CBN and are expected to sell at N362.
This is even as he added that, many have been forced out of the business. “The direct implication of this will be the loss of about 20,000 jobs nationwide as the tactical edging of BDCs out of the market will result in the sacking of its workers across the nation,’’ Gwadabe said. The ABCON chief appealed to the Apex Bank to make BDCs direct agents of Internationainvestment. ansfer Service Operators (IMTSO) since they were fully automated, and transparency had remained their watchword.
Gwadabe explained that the rate disparity in accessing the CBN window had elevated parallel market operators to the delight of the enemies of the Naira. He said that the edging of BDCs out of the market would inhibit financial inclusion as BDCs make N30 billion weekly turnover which translates to commission for the commercial banks. Gwadabe said that BDCs remain the potent agent for transparency and price stability in the market as exemplified during the peak of the recession when exchange rate volatility was blown out of proportion.
He noted that if the parallel market, which selling rate was presently lower than that recommended for the BDCs, was allowed to dictate the market price, there may be the resurgence of fake currency in the market. “Allowing the parallel market operators to dictate the price in the market will erode investors’confidence and that of the International Monetary Fund (IMF) in the nation’s economy. “This also will be counterproductive to the mandate of the CBN and that of the IMF. “It will run counterproductive to the IMF mandate of price discovery and stability.