“No More N900/$”: BDC Operators Send Important Message to CBN As Naira Records Massive Gain Against US Dollar

Aug 17, 2023 | Uncategorized


  • ABCON has sent a passionate appeal to the Central Bank of Nigeria (CBN) in regards to the depreciation of the naira
  • This comes after the naira recorded an impressive improvement against the US dollar in the unofficial markets
  • The President of ABCON spoke to Legit.ng, outlining measures that must be taken to recover the loss of value of the naira

The Association of Bureau de Change Operators of Nigeria (ABCON) has asked the Central Bank of Nigeria to sell forex to them to improve dollar liquidity in the country.

ABCON President Aminu Gwadebe in a telephone interview with Legit.ng said that such a decision will help ease the pressure on the naira.

He stressed that BDCs can go a long way in helping the CBN monetary policies and efforts to create stability in the forex market.

Naira to dollar exchange rates
Aminu Gwadebe is the president of ABCON
Photo credit: ABCON
Source: Facebook

Legit.ng in an earlier report, revealed that the CBN had excluded BDCs from accessing foreign exchange at the Investors and Exporters(I&E) window, which is the official forex market.

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Aminu stressed that his members remain a critical component in the forex exchange markets, and should CBN reverse its decision; it will help reduce speculators’ power.

“The volatility of the naira is not because of purchase of dollars it is because of corruption, some people are benefiting from the distortions in the forex markets.”

Naira to dollar exchange rate

BDCs operator’s appeals come when the Nigerian currency, the naira, recorded an impressive recovery against the US dollar at unofficial markets.

The peer-to-peer markets are primarily utilised by cryptocurrency traders, while the black market refers to street-level transactions.

On Monday, August 14, 2023 the acting Governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi, warned speculators that they would regret hoarding the US dollar to create artificial scarcity.

The warning proved effective, as evidenced by panic selling observed on Wednesday from customers who had stored foreign currency in anticipation of further weakening of the local currency.

Checks by Legit.ng show that the naira, which exchanged as high as N950 a dollar on Tuesday, was sold at low as N850/$ at the black market on Wednesday afternoon.

Similarly, at the P2P market, one dollar was sold below N900 a dollar.

Over N29bn spent printing new naira notes and throwing away old ones

Meanwhile, in another report, Legit.ng revealed that the CBN had provided a breakdown of its financial performance and expenses undertaken during the 12 months of 2022.

Part of the expenses recorded is the over N29 billion spent on printing naira notes and disposing of the bad ones.

The CBN destroys unfit banknotes regularly under strict security and with the authorisation of Section 18(d) of the CBN Act 2007.

Source: Legit.ng





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