The Association of Bureaux De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to reconsider and lower its exchange rate, currently pegged at N1,251/$, for its members. ABCON’s National President, Aminu Gwadabe, conveyed this appeal in a letter addressed to the CBN Director of the Trade & Exchange Department.

This plea arises as the parallel market rate stands at 1,235/$, lower than the applicable buying exchange rate of 1,251/$ (plus a 1.5% margin) set by the CBN in its recent interventions. Gwadabe expressed concerns about the challenges faced by BDCs in offloading the expensive CBN-sourced forex to retail buyers, who opt for cheaper rates from undocumented forex operators.

Furthermore, Gwadabe highlighted the delayed disbursement of dollar allocations to many BDCs, despite funding their accounts at the CBN’s specified rate. This delay, coupled with the scrutiny of BDCs’ documents for collections, has left them vulnerable to exchange rate risks and significant losses.

While acknowledging the CBN’s efforts to restore the naira’s value and lauding the recall of BDCs into the official FX window, ABCON stressed the urgency of adjusting the funding rate downwards to align with the current market rate discovery. The association emphasized the importance of timely payments and bid collections through enhanced automation to streamline processes and boost confidence among members.

ABCON urged the CBN to introduce a cut-off time for payments and bid collections to ensure effective administration and control of the process. It emphasized that a swift response from the apex bank would address the existing exchange rate disparities, bolster BDC operators’ confidence, and enhance their participation in the bidding process.