The Association of Bureau De Change Operators of Nigeria has said that recent developments in the foreign exchange market have shown that unless the Central Bank of Nigeria eliminates the disparity in foreign exchange rates, the Bureau De Change Operators would be technically edged out of the market.
Speaking through its acting President, Alhaji Aminu Gwadabe, ABCON explained that edging out about 3,200 CBN-licensed BDC operators from the foreign exchange market would lead to over 30,000 job losses in an economy that was gradually recovering from recession.
Gwadabe advised the apex bank to, as a matter of urgency, resolve the disparity in applicable exchange rates among players in the market.
The ABCON acting President also warned that speculators’ fingers had been burnt due to the policy, and would continue to be burnt as long as the apex bank is determined to carry on the battle of forex stability to the end.
He said the new policy was a long awaited liberation the naira needed to check speculators from manipulating the exchange rate for their selfish ends. The market, he added, was already adjusting at a faster pace as the naira continued to appreciate across board in all the major segments of the market.
But analysts doubted whether the moves would draw investors back to the suffering economy. “Investors are clear that what they want is a properly functioning forex regime, where new forex shortages are not threatened.
The new system does not currently meet those requirements, even if forex sales have increased,” said Razia Khan, Africa Chief Economist at Standard Chartered Bank.
