FOREX: Parallel marketers, bankers’ clash imminent

The relative relief that Nigeria has been enjoying since mid February 2017 over stability in the foreign exchange market may soon be shattered, as a fresh row between the parallel foreign exchange market operators and the Central Bank of Nigeria (CBN) is brewing.

It could be recalled that some independent forex dealers were in 2016 arrested by security operatives for alleged abuse of the market.

But an investigation has revealed that an alleged failure of the apex bank to keep to its promise of accomodating other stakeholders in the forex market, along with the commercial banks, is at the centre of the pending crisis.

It was learnt that in one of the series of meetings with all major players on the market in 2016, many stakeholders were involved

They included: the Bankers Committee, leadership of Bureau De Change Operators of Nigeria (ABCON) and officials from the Finance Ministry and that of Ministry of Trade and Commerce among other agencies.

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It was also gathered that there was an understanding that to achieve a sustainable result from the CBN strategy, both the commercial banks and other key players in the market should be carried along.

But ABCON oficials on Sunday complained that contrary to the understanding, the CBN has been favouring only the commercial banks in its drive to shore up the naira exchange rate.

The ABCON Lagos Chairman, Abdulahi Shehu, put it this way: “Everybody is happy that naira is picking up its lost values, but there is the fear that such is being achieved at the expence of some of us.

“From the look of things, there is a subtle move to dislodge us from the business, in the sense that our means of livelihood is gradually being taken away from us. Otherwise, how come banks are now compelled to open kiosks at airports and shopping malls where we operate?

“We are not quarreling with that alone, but when CBN strategy is giving a lot of undue advantage to some players more than others, there is bound to be fears.

“Take for instance, allocation of a certain percentage of dollars to us, periodically, has not been carried out since the take-off of the new strategy and this will force us to withdraw our support to the programme”.

But CBN spokesman, Isaac Okoroafor, when contacted said the parallel marketers were yet to officially table any complain before the authorities.

He said the CBN would not want to be distracted on its current programme that has seen the naira regain its strength against major foreign currencies.

Okoroafor maintained that it would not be to the interest of anyone or organisation to sabotage the strategy, which he described as a perfect results-oriented programme.

“Already banks and other stakeholders are now chasing after end-users of dollars, unlike before when scarcity of that currency was leading to tumbling down of the naira at the detriment of the economy,” he said.

But reports say banks are already having enough dollars in their vaults such that they have deviced a means of luring users to patronise them.

However, despite the gains of the CBN strategy, the manfacturing sector is said to still be in dire need of dollars.

“Until the real sector is taken care of by the CBN, the present arrangement will remain a palliative and not a permanent solution to the issue of dollar scarcity,” said an economist, Henry Moyo.

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