BDCs reiterate support for CBN’s monetary policy, financial stability efforts

The Bureaux De Change Operators (BDCs) have reiterated their support for the Central Bank of Nigeria’s (CBN’s) financial stability and monetary policy functions.

The CBN’s sound monetary policy decisions have also impacted positively on the banking system and economy, as bank customers now have confidence in the financial system.

Aminu Gwadabe, president, Association of Bureaux De Change Operators of Nigeria (ABCON) said in a statement released on Tuesday, that the apex bank under  Godwin Emefiele, governor of CBN has achieved financial stability and promoted monetary policy initiatives that have kept the economy on the right paths.

Gwadabe said the monetary policy decisions of the CBN has helped to lower inflation rate, boosted foreign reserves and stabilized the Naira.

He said the local currency has been continuously strengthened by the CBN dollar/Yuan interventions and other policy initiatives.

“The monetary policy decisions, Anchor Borrowers’ Programme and foreign exchange interventions are among the measures that brought inflation down from 17.2 per cent in April, 2017 to 11.37 per cent in January 2019. The CBN-led Monetary Policy Committee (MPC) has kept benchmark interest rate steady at 14 per cent for over two years to curb inflation and support the naira,” he said.

He said CBN’s registration of more International Money Transfer Operators (IMTOs) from 11 to 60 operators has also boosted Diaspora remittance inflows into the economy adding that the short-term outlook of the Nigerian economy remains good.

He also applauded the CBN’s initiatives including the Investors’ and Exporters’ (I&E) Forex window, which has helped to attract foreign capital investment into the economy as well as foreign investors who are committed to unlocking Nigeria’s economic potential.

Gwadabe said the CBN’s restriction on 42 items that can be produced locally from accessing foreign exchange has not only improved the local production of the concerned items, but led to better utilization of available foreign exchange.

The ABCON boss also applauded the CBN’s Anchor Borrowers programme, which has led to Nigeria’s self-sufficiency in rice production, moving the country from a net importer of rice to a major producer of rice, supplying key markets in neighboring countries.

The apex bank, he added, also established a N300 billion Real Sector Support Facility (RSSF) to unlock potentials in the economy and promote real sector growth. The facility is supporting large enterprises for startups and expansion financing needs of N500 million up to a maximum of N10 billion in key sectors of the economy, especially manufacturing, agriculture and services.

He said the Anchor Borrowers’ Programme, together with other initiatives like the Commercial Agriculture Credit Scheme and other packages for Small and Medium Enterprises (SMEs), are holding on significantly in the drive to boost the economy and shield it from perceived volatilities in the international economy that is dragging back most emerging markets.