The Association of Bureau De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to extend the deadline for BDC operators to reapply for new licenses.
The association also made a case for a review of the stringent conditions attached to the reapplication process.
ABCON President, Dr Aminu Gwadabe, in a statement on Wednesday advised the CBN collaborate with BDCs, leveraging their capacity as players in the forex market to achieve adequate liquidity and lower volatility in the retail end, thereby stabilising the economy.
He cautioned against a rate war in the interbank market, which could be detrimental to the Naira.
Gwadabe noted that despite the CBN’s interventions such as injecting millions of dollars into the interbank market, expected positive impacts had not been yielded.
He commended the CBN’s recent resumption of forex sales to BDCs as part of various policy measures to curb volatility in the retail market, pointing out that BDCs play a crucial role in achieving adequate liquidity and reducing volatility in the retail end of the market.
Gwadabe urged the CBN to enhance the volume and frequency of interventions at the retail end through BDCs, noting that it had shown positive results recently.
He suggested that the CBN pegs exchange rate policy to build market confidence and strengthen fiscal buffers to fulfill its mandate.
The ABCON president also urged fiscal authorities to maintain integrity in all their dealings, ensuring that their policies are relevant and acceptable to the Nigerian populace.
