CBN’s sale of interbank FX to BDCs will tame Nigeria’s inflation — ABCON
The Association of Bureau De Change Operators of Nigeria (ABCON) has commended the Central Bank of Nigeria (CBN) for lifting the suspension on the sales of interbank foreign exchange to its members nationwide, stating that this move will help curb the country’s inflation and bring other benefits.
ABCON President, Dr Aminu Gwadabe, made the remarks in a statement issued over the weekend in Lagos.
According to Gwadabe, the decision will not only create jobs but also improve foreign exchange liquidity at the retail level, among other advantages.
“For our members, this development will revitalise our operations, making us functional and profitable. It will also enhance our compliance with security and monetary agencies’ requirements,” he said.
He also expressed satisfaction that the CBN had considered the accessibility of its members to the new Electronic Foreign Exchange Matching System (EFEMS) market via the banks.
“This move demonstrates the CBN’s recognition of our third-tier role in the foreign exchange market structure. I urge all our members to comply with the guidelines outlined in the circular and ensure that the desired outcome of appreciating the local currency is achieved,” Gwadabe added.
He further emphasised that Bureau De Change (BDC) operators should submit their returns regularly, operate from their designated offices, and ensure seamless automation of their processes.
“Finally, I appeal to the banks to ensure transparency and a level playing field in their dealings with our members nationwide,” he concluded.
On Thursday, the CBN granted temporary permission to BDC operators to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
This move, outlined in a circular dated December 19, 2024, aims to meet the seasonal retail demand for foreign exchange during the holiday period.
The circular, signed by T.G. Allu on behalf of the Acting Director of the Trade and Exchange Department, states that the arrangement will be in effect from December 19, 2024, to January 30, 2025.
Under the new directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided their accounts are fully funded before accessing the market.
The transactions will be conducted at the prevailing NFEM rate, and BDCs are required to maintain a maximum 1% spread when pricing FX for retail end-users.
All transactions carried out under this scheme must be reported to the CBN’s Trade and Exchange Department.
