Bureau de change operators eyeing merger to withstand forex volatility

Members of the Association of Bureaux De Change Operators of Nigeria (ABCON) are considering a merger as they struggle with foreign exchange volatility and scarcity.

ABCON said the merger will improve the members’ financial standing and increase their capacity to buy foreign exchange after the naira devaluation sent the dollar rate upwards from N755.7/$1 to N925/$1 between June 13 to September 12.

Recall that since the devaluation on June 14, the exchange rate between the dollar and the naira has also increased from N471.67/$1 to N742.10/$1, forcing persons or organisations in need of the United States currency to cough up more naira.

READ ALSO:Bureau De Change operators increase Dollar, Pound rates, blame redesigned naira plan

The new move was disclosed by Bloomberg on Wednesday in a report that stated the bureau de change operators had proposed the merger to the Central Bank of Nigeria (CBN).

Aside from the merger, the BDC operators are also requesting that the financial regulator increase their capital base requirements from N35 million to N350 million to facilitate the restructuring.

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