ABCON unveils strategies to stop further Naira decline

The Association of Bureaux De Change Operators of Nigeria (ABCON) has unveiled some strategies on how to save the naira from further decline and enhance exchange rate stability.

These strategies/roadmap campaign plans are needed to save the naira from further decline, bridge exchange rate gaps and curb volatility in the forex market.

This disclosure is contained in a statement issued by ABCON President, Alhaji Aminu Gwadebe, at the end of its National Executive Council meeting held on Thursday in Lagos, where he said that there was an urgent need to enhance dollar liquidity in the market and ensure stability of prices in the economy.

Gwadebe in the statement said that implementing those strategies will save the naira and economy from the impact of election spending that has kept inflation at double digits for a very long time.

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The ABCON boss said that the depreciation of the naira against global currencies was due to pressure from rising dollar demand without sufficient liquidity to meet the demands from retail end users, manufacturers and other key players in the economy.

The creation of BDCs’ Autonomous Foreign Exchange Trading Window (BAFEX) with a determined maximum daily limit for legible BDCs to access dollars from banks, autonomous market and Diaspora forex window at the prevailing market prices.

He said the BDCs should be allowed to access dollars or Diaspora remittances through the autonomous forex windows like allowing operators to receive IMTOs proceeds, carrying out online dollar operations and Point of Sale (PoS) Agency, among others.

Gwadabe said that now is the time to break the current industry monopoly that puts the remittances market in the hands of a few players depriving others from tapping into the plan.

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Gwadebe said, “The BDCs should be able to operate a network of digital solutions for Personal Travel Allowance, PTA, and Business Travel Allowance, BTA. This would reduce overheads, and improve profitability. Some BDCs might still consider working closer with commercial banks.

He warned that the de-marketing of BDCs by regulators and security agencies is not good for the stability of the market, rather the strength of over 4,500 operators can be harnessed to bring forex closer to the retail end-users and strengthen liquidity in the market.

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He said that ABCON has developed multiple applications for BDCs’ transformation from being CBN cash dispensers to globally competitive entities with capacity to attract foreign capital flows to the economy.