The Association of Bureau De Change Operators of Nigeria, ABCON, has appealed to the Central Bank of Nigeria, CBN, to adjust its applicable exchange rate below the N1,251 per dollar its pegged for the BDCs.
The National President of ABCON, Aminu Gwadabe disclosed this on Saturday in a letter to the CBN Director, Trade & Exchange Department.
Recall that the apex bank, in a major move to boost FX liquidity, released $10,000 to each BDC to sell at N1,251 per dollar.
However, following to the continued appreciation of Naira which stood at N1,251 on Friday, the Association of BDCs called on the CBN to review the rate downward for FX allocation.
The group insisted that the Naira’s speedy recovery, which has been faster than expected, had made CBN’s selling rate to BDCs very expensive and difficult to offload to retail end buyers that are trooping to the undocumented forex operators for cheaper rates.
ABCON further expressed concerns that many BDCs who funded their accounts for dollar allocations are yet to receive their allocation of dollars to meet up with the legitimate critical demand of their clients due to scrutinization of the BDCs documents for collections at the various designated centers.
The association said the development invariably make the BDCs vulnerable to exchange rate risks and significant loses.
“We discovered a worrisome development where many of our members who paid for dollar allocations at N1,251 per Dollar with a margin of 1.5 perccent are yet to receive their disbursement.
“This is happening in the face of prevailing open market rate of N1,235 per Dollar which is lower than the authorised applicable exchange rate by the CBN to the BDCs.
“It is in view of the above market developments that we write to appeal to your good selves for a readjustments and review downwards of our funding rate of the last tranche (2nd bidding) from N1,251/$ further down to reflect current market rate discovery.
“This became imperative as it is only the consideration of the readjustment downward that will enable our members to upload their holding positions,” the statement said.
ABCON also requested that process of payments at the various disbursements centers be reviewed in the immediate time to a medium time automation to achieve enhanced timely payments while also observing the spot nature of transactions.
Naira appreciation: BDCs urge CBN to review FX rate
