The President of the Association of Bureau De Change of Nigeria, Aminu Gwadebe, has urged the Central Bank of Nigeria to tap into the strengths and network of BDC operators to strengthen the naira.
Speaking exclusively, Gwadebe said that given the enormity of the forex challenges, the apex bank needed to allow the BDCs play their role in the economy.
He said, “We understand that it is a national issue. That it is a national epidemic because we have poor reserves. But with the new reforms taking place on the supply side, we (hope) we will be welcome on board. This is our expectation, and we are confident that the regulators will listen to us.”
“The government has been trying to improve our oil production output. The reserve is dependent on the sources of foreign exchange; crude oil sale is about 80 per cent of that. The government is trying to increase production. The price is also going up. They are also working on international money transfer operators. So many things are being done boost the reserve on the supply side.”
“We are also telling the central bank that if it wants to bring down the exchange rate, the Bureaus De Change remain the most acceptable. We are urging the central bank to utilise the strength and network of BDCs. It will help them to achieve their aim.”
On Tuesday, naira fell to a record low of 1,482/$ on the official market after the currency suffered losses on the forwards market. Naira had closed at 1,348 against the greenback on Monday after the FMDQ Security Exchange review the methodology used for the calculation of its rates.
This followed a CBN circular to banks on financial market price transparency, warning them against engaging in sharp practices.
The CBN banned the operations of BDCs since July 2001, as part of measures to stabilise the local currency.
However, the naira has depreciated significantly since the apex bank harmonised segments of the forex market in June 2023.
Meanwhile, Gwadebe added that the association had nothing to with the BDCs who shut down their operations in Abuja on Thursday, citing high forex rates.
He also denied reports that the government shut down their operations.
He said, “No government shut down and our members didn’t shut down because we have not issued that directive. You know in this country, once they hear Bureau De Change, they assume that we all mean the same. That arrangement is not from the national body of ABCON.”
On the issue of the nation’s poor reserves, the Chief Executive Officer of Economic Associates, Ayo Teriba, said that the government needed to boost it to an appreciable level to achieve a stable naira.
He said, “Nigerians are concerned about what is happening to the exchange rate but they are not discussing the issue with the reserves. If you want to solve a problem, you have to look at the root cause of the issue.