Despite huge campaign spending by political parties for the on going strategic partnership between the Central Bank of Nigeria (CBN) and the Association of Bureaux De Change Operators of Nigeria (ABCON) has continued to impact on the stability of the naira at both the official and parallel foreign exchange markets.
ABCON President, Alhaji Aminu Gwadabe, who spoke with financial journalists in Lagos at the weekend, said measures put in place by the CBN including the sustenance of dollar supply to over 4,000 Bureau De Change (BDC) operators across the country through the International Money Transfer Operations (IMTOs) forex window has helped the local currency to remain stable.
Accordingly, the CBN, spot rate closed last week somewhat flat at N306.75/$1 from N306.70/$1 in the prior week. Similarly, the exchange rate at the Investors & Exporters Forex window closed at N364.70/$1.
At the parallel market and BDCs, the naira traded at N363/$1 throughout the week.
According to him ” The naira remains stable despite political parties campaign spending across the nation. The strategic partnership, actions and pre-actions of the Central Bank of Nigeria and the Association of Bureaux De Change Operators of Nigeria have stopped distortions to the exchange rate due to ongoing politicking and campaign spendings in the country.”
Speaking further, he said the determination of the apex bank to maintain the IMTOs forex window for the over 4,000 BDCs on weekly basis has brought steady liquidity in the market and discouraged unethical market behaviours like hoarding, speculation and frivolous demand.
Gwadabe said that on its part, ABCON has ensured that its members continue to make dollar accessible to critical end-users like travelers demanding personal and business travel allowances, school fees and medical bills payment abroad among others.
Gwadabe said the ongoing ABCON automation and configuration of soft token for forex return rendition by over 4,000 BDCs nationwide will enhance transparency and financial integrity of the operators. “This feat will no doubt strengthen the effectiveness of the technical compliance of the Anti money laundering and counter terrorism financing laws and help Nigeria’s assessment into the Financial Action Task Force coming up next year,” he stated.
