Bureau De Change operators blame CBN for N730/ dollar exchange rate

The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, on Monday, blamed the Central Bank of Nigeria (CBN) for the huge gap in the Naira/dollar exchange rate at the official and black markets.

He said before the CBN banned sales of forex to the BDC operators in July 2021, the exchange rate for dollars in the black market was N501/$1.

However, since the embargo, the rate has increased to N730/$1.

In a statement he personally signed in Abuja, Gwadabe stressed that the apex bank was largely responsible for the N300 difference between the parallel and official forex market, where dollar exchanges for N430/$1.

He said: “The foreign exchange policy of the Central Bank of Nigeria (CBN) has adversely impacted the naira stability across all markets and created a huge premium between official and parallel market rates.”

READ ALSO: Naira falls in value to all foreign currencies as dollar supply drops

He argued that the official market lacks credibility and transparency due to the difference with the black market rate, saying the CBN having its fixed price at N430/$1 would continue to hurt the economy.

Such a decision, according to the ABCON president, “encourages rent-seeking and currency substitution that continues to hurt real sector operators and the overall economy.”

With the ban creating dollar scarcity in the parallel market, Gwadabe said the BDC operators don’t have access to many forex channels.

“A licensed BDC in Nigeria cannot access oil proceeds, non-oil proceeds, and Diaspora remittances. We need expansionary regulatory approvals on the scope of transactions and margin reviews.”

“I am not a prophet of doom and student of continuing naira depreciation but except fundamental goodwill and courage are demonstrated, the naira will continue to suffer loss in exchange for the greenbacks.

“The question on the lips of everyone is, are the banks not having the allocation for invisible transactions?”

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