ABCON Calls for End to Multiple Exchange Rates Regime
The Association of Bureaux De Change Operators of Nigeria (ABCON) has advised the Central Bank of Nigeria (CBN) to urgently take steps to address the multiple exchange rate regime.
President of ABCON, Alhaji Aminu Gwadabe said this while speaking with journalists at the end of an emergency meeting by the association in Lagos yesterday.
Represented by the National Treasurer, Mr. Gbadamosi Moh-Murtala, Gwadabe said multiple exchange regime affects the operations of members of the association negatively.
He highlighted contributions by the association in ensuring that the country continues to enjoy stability in the foreign exchange (forex) market.
Gwadabe said: “The issue of multiple rates is a thing we have been discussing with the CBN. It is not helping a lot of companies to plan. So, we are imploring the CBN who is the custodian of exchange rate management to work towards a single exchange rate that would favour the economy.
“For instance, the rates at which they (CBN) sells to the commercial banks is N358 to the dollar and we are being sold to at N360 to a dollar. And we are meant to sell the same products to members of the public.
“For instance, dollars for PTAs, BTAs and schools fees which we sell are also being sold by the banks and the CBN is giving them preferential treatment. In view of that, our members are operating at a loss. That is why we are calling on the management of the CBN to consider our plight.
“A lot of our members are withdrawing from participating in the market and the implication of that is that there would be little supply of forex to the market which can distabilise the market.”
The ABCON boss anticipated a stable forex market this year.
Gwadabe explained: “By the time we were brought into the market last year, we gave the CBN the assurance that with the number of our BDCs, we would be able to reach everywhere in this country and that contributed to the stability we are enjoying today.”
He expressed optimism that Nigeria would continue to attract inflow of foreign exchange, saying that in 2018, “I pray that the international oil market remains stable so that the inflow of forex will help the stability to continue.
“Also, if the international money transfer services (IMTS) continues to flow into the country, I believe the exchange rate would be stable.”
He said the BDCs were at a disadvantage, as forex users shunned them for the parallel market where they could buy without documentation.
“Many forex users prefer to buy at the parallel market instead of BDCs because there are no longer rate gaps. They prefer the parallel market where there is no single documentation required. That is why we are calling on the CBN to review the rate band for BDCs.
“We want the CBN to review the BDC rate to ensure that currency speculators do not return to the market,” he added.
He said ABCON members would also find ways to get the CBN to reduce rising bank charges associated with their transactions.
“BDCs are charged N1,000 per N1 million transaction and with each operator paying as much as N67,000 for the N67 million monthly transactions. These charges are too high and our members will be discussing how to get the CBN reduce that burden,” he said.