P
ProfRem
Guest
The Central Bank of Nigeria (CBN) will meet with representatives of the Association of Bureaux De Change Operators of Nigeria (ABCON) at Clover Hall, Lagos today.
According to BusinessDay, the meeting is scheduled to discuss issues concerning ways to deepen and achieve a more vibrant foreign exchange market in the country.
Meanwhile, the President of the Association of Bureau de Change Operators in Nigeria, Alhaji Aminu Gwadabe in an interview with Thisday said there is need for BDC market because already the 41 items that were excluded from accessing forex which are to be funded from the black market. Also, Nigeria is an import-dependent economy and this would continue to put pressure on forex. So, it is going to take time to that gap to be bridged.
He said: "we can achieve it, but it is going to take time. But the introduction of the BDC into the new system will definitely reduce that gap or eliminate it completely. It is easier to say it’s the BDCs that causes the spike, but BDCs have been totally shut from the market.
“The BDCs have the network and distribution capacity, the convenience, potency and ability to serve the critical retail segment of the economy. The banks do not have the network to ensure that dollars circulate to the retail segment of the economy. Remember the BDCs are up to 3,000 in Nigeria, with wide network, far and wide. If you go to a lot of states, you can even count the number of bank presence, but you will always have BDC operators. If you fly into the country at 2am, at the airport, you will not meet any bank that is open for you to do your transaction.
“If you want to buy $300, the banks may not look your way, which is why you need BDCs around you. From 2006 to 2015, the BDCs helped the CBN in converging the exchange rate between the official and black market because we are the ones that can trickle down the circulation of forex. We are real traders; we are not like banks that have idle naira”, he stated.
According to BusinessDay, the meeting is scheduled to discuss issues concerning ways to deepen and achieve a more vibrant foreign exchange market in the country.
Meanwhile, the President of the Association of Bureau de Change Operators in Nigeria, Alhaji Aminu Gwadabe in an interview with Thisday said there is need for BDC market because already the 41 items that were excluded from accessing forex which are to be funded from the black market. Also, Nigeria is an import-dependent economy and this would continue to put pressure on forex. So, it is going to take time to that gap to be bridged.
He said: "we can achieve it, but it is going to take time. But the introduction of the BDC into the new system will definitely reduce that gap or eliminate it completely. It is easier to say it’s the BDCs that causes the spike, but BDCs have been totally shut from the market.
“The BDCs have the network and distribution capacity, the convenience, potency and ability to serve the critical retail segment of the economy. The banks do not have the network to ensure that dollars circulate to the retail segment of the economy. Remember the BDCs are up to 3,000 in Nigeria, with wide network, far and wide. If you go to a lot of states, you can even count the number of bank presence, but you will always have BDC operators. If you fly into the country at 2am, at the airport, you will not meet any bank that is open for you to do your transaction.
“If you want to buy $300, the banks may not look your way, which is why you need BDCs around you. From 2006 to 2015, the BDCs helped the CBN in converging the exchange rate between the official and black market because we are the ones that can trickle down the circulation of forex. We are real traders; we are not like banks that have idle naira”, he stated.
