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Exchange rate unification to maximise remittances’ benefits – ABCON

Leading Bereau D’Change body, the Association of Bureaux De Change Operators of Nigeria (ABCON), has said that unification of exchange rates is necessary to maximise the economic benefits of increased remittances inflow into the economy.

In a statement, the group averred that the recent policy measures introduced by the Central Bank of Nigeria to improve inflow of remittances by allowing beneficiaries to collect proceeds in foreign currency. It however said, “The fundamental problem is not the payment of foreign currency to beneficiaries but fallout of multiple exchange rates in Nigeria’s foreign exchange market.”

The association stated this in its quarterly economic review for the fourth quarter of 2020. It said without the unification of the multiple exchange rates across the forex market, the increased inflow of remittances may be vulnerable to capital flight and make limited impact on the economy.

ABCON said, “A survey carried out by ABCON quarterly revealed that a large percentage of beneficiaries require naira for domestic commitments in Nigeria. “Upon collection of foreign currency cash or drawing from their domiciliary accounts as the policy provided, they do the conversion usually unofficially where the exchange rates are higher.