Markets

Curb illegal transactions at borders to sustain Naira appreciation – BDC operators

by NAN

March 26, 2017 | 3:50 pm
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In this photo taken Tuesday Oct. 20, 2015, a money changer counts Nigerian naira currency at a bureau de change, where a dollar buys 222 naira compared to the official rate of 198, in Lagos, Nigeria. The IMF is pressing Nigeria to further devalue its naira currency amid uncertainty over the political and economic outlook for Africa's biggest oil producer and economy. Analysts said there's disappointment that President Muhammadu Buhari's long-awaited Cabinet list includes no economic stars. The naira has lost 25 percent of its value in the past year and the stock market has plummeted because of political uncertainty and halved prices for oil that provides most government revenue.(AP Photo/Sunday Alamba)

Bureau De Change Operators have called on security agencies to curb illegal currency transactions at Nigerian borders to sustain the recent appreciation of the Naira against other foreign currencies.

Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON), made the call in an interview with the News Agency of Nigeria (NAN) on Sunday in Lagos.

Gwadabe said that recent surveillance of the nation’s boarders by combined teams of security agencies helped to reduce frivolous demand for the dollar by 80 per cent.

According to him, the reduction in the frivolous demands of the dollar accounts for the magnificent strength of the naira at the foreign exchange market.
“I urge both the regulators and the relevant security agencies to continue to keep faith with their surveillance efforts on illegal transactions for a quicker rates convergence and true value of the Naira,’’ he said.

Gwadabe said the inability of banks to clear the 100 million dollars offered by CBN on Friday and the return of about 19 million dollars unutilized funds, testified to the elimination of frivolous demand in the system.

“This also shows that the BDCs are better positioned in networking, convenient and more effective than the conventional banks in the elimination of rates disparity.

“The BDCs have helped the CBN to achieve this objective from 2006 to date.

“The CBN should quickly look into the review of applicable exchange rates and volumes for the BDC subsector to ensure speedy rates convergence and true value of the Naira,’’ Gwadabe said.

Financial experts are of the opinion that unless the CBN eliminates multiple exchange rates in the market, its efforts at rates convergence and the sustenance of the gains recorded by the Naira could be reversed.

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by NAN

March 26, 2017 | 3:50 pm
  |     |     |   Start Conversation

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