New Exchange Rate: lack market is projected to decrease nationwide due to Bureau de Change dealers’ actions
This action by ABCON aims to aid CBN’s efforts towards stabilizing the naira in the foreign exchange market
The considerable gap between the black market and the official exchange rates is a pressing issue for the CBN
ABCON is implementing plans to lower the dollar exchange rate to less than N1,000/$.
ABCON executives have mandated Bureau de Change dealers nationwide to refrain from buying dollars for more than N900 from black market sources.
N1,045 to around N900 or N950 in the near future.
According to Whistler reports, ABCON hopes this move will lead the new Central Bank Governor, Olayemi Cardoso, to resume forex sales to BDC operators which stopped in 2021.
An ABCON member stated that the plans to lower the exchange rate to below N1,000 apply to all the BDCs in Abuja, Lagos, Port Harcourt, and Kano.
After selling the dollars bought for above N1,000 in the past weeks, traders will start using the new exchange rate.
Abdullahi Yusuf of AYA Modo Nigeria Limited confirmed plans to set the dollar to naira rate below N1,000 at the black market.
However, he called on the CBN to resume dollar sales to registered BDC operators for the plans toa be successful.
WOTHAPPEN reached out to Aminu Gwadabe, the president of ABCON, but he failed to confirm the directive.
However, he noted that ABCON as an association would comply with the CBN allowable limit of -2.5 per cent to +2.5 per cent of the Nigerian Foreign Exchange market window weighted average rate of the previous day.
“As usual, we believe that making the Naira stable requires the CBN to make our sector commercially viable by opening up other sources for our members to ensure business continuity.
“ABCON and its members are Nigerians and will embrace any CBN policy aimed at ensuring Naira stability and including BDCs as a third pillar for moderating and regulating the parallel market.”
“The CBN has issued us directives that we should only transact our business at their referenced anchor rates and advise our members to do the necessary.”
Bureau de Change operation in Nigeria
There are a total of 5,691 CBN-approved BDC operators. Here’s a breakdown of the top 10 states with the highest numbers.
- Lagos: 2,958
- FCT: 1,179
- Kano: 981
- Anambra: 259
- Kaduna: 55
- Abia: 50
- Oyo: 32
- Enugu: 25