Review policy on dollar importation, BDC operators tell CBN

Bureau De Change (BDC) operators in Nigeria have called on the Central Bank of Nigeria (CBN) to review the policy on dollar importation into the economy for the purpose of defending the naira.

They say the apex bank should introduce a policy whereby the naira is used to intervene in the real sector of the economy to boost productivity.

As a way of reducing demand for dollars, they tell the CBN to explore the option of promoting the use and acceptability of naira for transactions within the West African sub-region.

“We observe that this is already happening at the level of informal trading activities within the sub-region, and it is our belief that this can be replicated at the level of formal economic activities,” Aminu Gwadabe, acting president, Association of Bureau De Change Operators of Nigeria (ABCON), says at a press conference in Lagos.

On the part of ABCON, as a way of enhancing transparency in the BDC subsector, the association has decided to introduce weekly foreign exchange (FX) rate band. This will serve as a guide to all BDCs and members of the public on the prevailing exchange rate across the country.

The Rate Band will be operated in line with the regulated FX rate in the economy. This is to forestall exploitation of FX end users, and also to ensure that end users are informed enough to avoid falling victims of exploitation.

As part of its responsibility as a self regulatory organisation, and also in continuation of its aim to transform its members to compete within the global regulatory currency market, Gwadabe says ABCON will seek the approval of relevant monetary and fiscal authorities as well as partnership for effective usage of the nation’s external reserve to enhance domestic trade and FX management.

“To this end, our website and internet platforms will be developed to position BDCs as serve agents to Western Union, currency auctioneers. We would also develop platforms that will allow our members to access sources of autonomous FX, like government agencies, embassies, IOCs, export proceeds, among others,” he says.

However, the ABCON has aligned itself with the stance of the government that there would be no further devaluation of the naira, noting “Of course, we have always kicked against devaluation of the naira because we believe it creates more problem than it solves.”