ABCON claims its partnership with CBN largely stabilized the naira
Whereas there seems to be a regime of forex stability even though exchange remained on the high side, the leadership of the Association of Bureaux De Change Operators of Nigeria (ABCON), has traced the observed strategic partnership between the Central Bank of Nigeria (CBN) and the group as the pivot upon which the naira has been relatively stable at both the official and parallel markets.
The president of the group, Alhaji Aminu Gwadabe, noted that upon the huge campaign spending by political parties ahead of 2019 elections following takeoff of presidential campaigns, the naira has remained stable.
In a statement made available to Business Hilights, ABCON averred that “The measures initiated by the CBN, including the sustenance of dollar supply to over 4,000 BDC operators across the country through the International Money Transfer Operations foreign exchange window, had helped the status of the naira”.
It recalled that the CBN spot rate closed somewhat flat at N306.75/$1 last week from N306.70/$1 in the prior week, adding that “the exchange rate at the Investors and Exporters forex window closed at N364.70/$1, while the naira traded at N363/$1 throughout the week at the parallel market and BDCs”.
According to Gwadabe, “The naira remains stable despite political parties’ campaign spending across the nation. The strategic partnership and actions of the Central Bank of Nigeria and the ABCON have stopped distortions to the exchange rate due to ongoing politicking and campaign spending in the country.”
“Besides, the determination of the apex bank to maintain the IMTOs forex window for the BDCs on a weekly basis had brought steady liquidity into the market and discouraged unethical market behaviours like hoarding, speculation and frivolous demand.
ABCON further assured that its members will continue to make dollar accessible to critical end-users like travelers demanding personal and business travel allowances, school fees and medical bills payment abroad, among others.
Gwadabe traced the ongoing ABCON automation and configuration of soft token for forex return rendition by BDCs nationwide to continued enhancement of the needed transparency and financial integrity of the operators.
“This feat will no doubt strengthen the effectiveness of the technical compliance with the anti-money laundering and counter-terrorism financing laws and help Nigeria’s assessment into the Financial Action Task Force coming up next year,” he noted.
He also stressed that the increased surveillance by the security agencies on illicit financial flow and controls at the nation’s borders had enhanced the stability in the market, pointing out that “The secondary market currently enjoys huge confidence, making it difficult for forex speculators and illegal forex dealers to manipulate the market”.
ABCON leadership also maintained that “The operations of IMTOs were part of the efforts by the CBN to liberalise the forex market, boost liquidity and make dollar more readily available to low end-users”.
