CBN, BDC operators partner to stabilize Naira

The Association of Bureau De change operators in Nigeria (ABCON) revealed that their present planned partnership with the Central Bank of Nigeria (CBN) has caused the Naira to remain stable in the official and parallel markets not minding the immense spending by political parties in their election campaigns.

While speaking to financial reporters in Lagos, Alhaji Aminu Gwadabe, the president of ABCON said actions taken by the Central Bank like the sustenance of the supply of dollar to about 4,000 BDC operators in different parts of the country by using the International Money Transfer Operations (IMTO)  foreign exchange window has aided in making the Naira stable.

Consequently, last week’s CBN spot rate went from N306.70 per dollar of the week before to close at N306.75 per dollar, increasing by just N0.05. Also, the Investors and Exporters Forex Window exchange rate closed at N364.70 per dollar. During the week, The Naira was exchanged at N363 per dollar at the Bureau De change and the parallel market.

“The Naira has remained stable not minding campaign spendings by different political parties in Nigeria. The present partnership and actions between the Association of the Bureau De change operators of Nigeria and the Central Bank of Nigeria has ceased distortions to the exchange rate which resulted from certain political campaign spending in Nigeria” He said.

He equally mentioned that the determination of the Central Bank to uphold the International Money Transfer Operations Forex window for about 4,000 Bureau the change operators on a weekly basis has contributed to providing stability in the market and disheartened negative market activities like speculation, hoarding and inappropriate demands.

Furthermore, Alhaji Aminu Gwadabe said that the ABCON and its members always try to make sure that the dollar is always available for those who really need them like travelers requesting for personal and business allowances, payment of medical bills and school fees overseas and others.

Still speaking, he said the present ABCON automation and token configuration for rendering of foreign exchange returns by about 4,000 Bureau the change operators in Nigeria will improve clarity and financial rectitude among them.

He was notably impressed about the high level of security monitoring illegal money flows and also the improved controls at the country’s boarders which has brought about market stability. Also, that the secondary market is currently enjoying total confidence and it’s making it hard for illegal Forex dealers and spectators to influence the market.

He also said that the functions of the IMTOs was also one of the endeavors of the Central Bank to uplift the foreign exchange market, improve its liquidity and provide enough dollar to customers who needs them. For this reason, Alhaji Gwadabe further praised and thanked the Central Bank for their commitment in trying to stabilize the Naira and prevent depreciation despite the declining global oil prices.

He made known also that the introduction of the Investors and Exporters Forex window is also among the endeavors of the Central Bank to build up the Forex market and improve its structure.

He advised foreign exchange customers to always do business only with BDCs with license from the CBN and urged them to report straying BDCs to face their penalty.