The Association of Bureau De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to adjust its applicable exchange rate downward from the current N1,251/$ for Bureau De Change (BDC) operators, citing the recent appreciation of the naira.
In a letter addressed to the Director of the CBN's Trade and Exchange Department, ABCON President Aminu Gwadabe highlighted the unprecedented situation where the parallel market rate of N1,235/$ is now lower than the official rate of N1,252/$, which is the buying rate for BDCs.
ABCON expressed concern that the naira's rapid recovery has made the CBN's selling rate to BDCs expensive and challenging to offload to retail end buyers who seek cheaper rates from undocumented forex operators.
Many BDCs, according to ABCON, have yet to receive their dollar allocations despite funding their accounts at the previous rate of N1,251/$. This delay, coupled with the current open market rate of N1,235/$, poses a significant risk of income and capital loss for BDCs if they sell at the prevailing market rate.
ABCON emphasized the need for a downward review of the applicable exchange rate to reflect the current market realities and ensure the sustainability of the naira's strength. The association urged the CBN to consider this adjustment to enable its members to manage their holding positions effectively.
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