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ABCON’s QER seeks end to multiplicity of foreign exchange windows

More pressure are now on the Central Bank of Nigeria (CBN) to take another strategic look at its foreign exchange regime so as to end the multiplicity of foreign exchange windows which is driving multiple exchange rate regime in the economy.

Details from its Quarterly Economic Review (QER) made available to Business Hilights in Abuja showed that the Association of Bureau De Change Operators of Nigeria (ABCON) is becoming restless on the negative impacts of the multiplicity of forex regimes in an economy that boosts of a central bank.

The QER noted in parts that “ABCON is concerned about the multiplicity of foreign exchange windows operated by the CBN and the resultant multiple exchange rate regime in the economy. Africa’s biggest economy has at least six exchange rates ranging from one for Muslim pilgrims going to Saudi Arabia, a retail rate set by licensed BDCs, a rate for foreign travel and school fees, and the official and black market rates”.

While arguing that time has come for the integration of the BDCs into the CBN Investors & Exporters FX windows, ABCON averred that such move will further deepen the market and unify the exchange rate, since the CBN Investors & Exporters window services the SMEs liquidity needs for forex exchange.

President of the body, Mr. Gwadabe Aminu argued in an interview that “The issue of multiple rates is a thing we have been discussing with the CBN. It is not helping a lot of companies to plan. So, we are imploring the CBN who is the custodian of exchange rate management to work towards a single exchange rate that would favour the economy”.

According to him, if the integration is not done ahead of the 2019 election, “the ripple effects of the forthcoming 2019 elections and the preceding campaign process on exchange rate may shock the economy to its marrow.

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