The Association of Bureau De Change Operators of Nigeria has tasked the Central Bank of Nigeria to begin the process of integrating its members into the investors and exporters foreign exchange windows.
The investors and exporters foreign exchange window is an initiative designed and introduced by the apex bank to boost liquidity in the forex market and ensure timely execution and settlement for eligible transactions.
Eligible transactions covered under the window include invisible transactions, such as loan repayments, loan interest payments, dividends/income remittances, capital repatriation, management service fees and consultancy fees.
The Acting President, ABCON, Alhaji Gwadabe Aminu, said, “If our members are integrated into the window, it would deepen the market and unify the exchange rate, since the CBN Investors and Exporters window services the SMEs’ liquidity needs for forex exchange.”
He added that there was the need for the CBN to end the multiplicity of foreign exchange windows and the resultant multiple exchange rate regime in the economy.
Gwadabe said, “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, such as the one for Muslim pilgrims going to Saudi Arabia, a retail rate set by licensed BDCs, a rate for foreign travel, school fees, and the official and black market rates.
He added that his group was also concerned about the ripple effects of the forthcoming 2019 elections and the preceding campaign process on the exchange rate.
The ABCON leader added that the negative implication of the likely exit of portfolio investors from the local bourse before the election, was a major concern on the local currency’s continued stability.
