‘CBN, ABCON partnership stabilises naira despite campaign spendings’

The ongoing partnership between the Central Bank of Nigeria (CBN) and the Association of Bureaux De Change Operators of Nigeria (ABCON) has kept the naira stable at both the official and parallel markets despite huge campaign spendings by political parties.

ABCON President Alhaji Aminu Gwadabe who spoke with financial journalists in Lagos at the weekend, said measures initiated by the CBN, including the sustenance of dollar supply to over 4,000 Bureau De Change (BDC) operators across the country through the International Money Transfer Operations (IMTOs) forex window has helped the status of the local currency.

Accordingly, the CBN, spot rate closed last week somewhat flat at N306.75/$1 from N306.70/$1 in the prior week. Similarly, the exchange rate at the Investors & Exporters Forex window closed at N364.70/$1.

At the parallel market and BDCs, the naira traded at N363/$1 throughout the week.

He said: “The naira remains stable despite political parties campaign spendings across the nation. The strategic partnership, actions and pre-actions of the Central Bank of Nigeria and the Association of Bureaux De Change Operators of Nigeria have stopped distortions to the exchange rate due to ongoing politicking and campaign spendings in the country.”

Continuing, he said the determination of the apex bank to maintain the IMTOs forex window for the over 4,000 BDCs on weekly basis has brought steady liquidity in the market and discouraged unethical market behaviours like hoarding, speculation and frivolous demand.

Gwadabe said on its part, ABCON has ensured that its members continued to make dollar accessible to critical end-users like travelers demanding personal and business travel allowances, school fees and medical bills payment abroad among others.

He said the ongoing ABCON automation and configuration of soft token for forex return rendition by over 4,000 BDCs nationwide will enhance transparency and financial integrity of the operators.

“This feat will no doubt strengthen the effectiveness of the technical compliance of the anti money laundering and counter terrorism financing laws and help Nigeria’s assessment into the Financial Action Task Force coming up next year,” he stated.

The ABCON boss was impressed that increased surveillance by the security agencies on illicit financial flow and controls at the nations borders have enhanced the stability in the market.