How CBN, BDC Operators Partnership Keeps Naira Stable Against Dollar

Godwin Emefiele
Godwin Emefiele

The sustenance of dollar supply to over 4,000 BDC operators across the country through the International Money Transfer Operations foreign exchange window initiated by the Central Bank of Nigeria, CBN, is said to boost the status of the naira.

Alhaji Aminu Gwadabe, the President of Association of Bureau De Change Operators of Nigeria, in a statement, further identified the ongoing strategic partnership between CBN and the association as another factor helping to keep the naira stable both at the official and parallel markets.

Gwadabe said: “The naira remains stable despite political parties campaign spendings across the nation. The strategic partnership, actions and pre-actions of the CBN and the Association of Bureaux De Change Operators of Nigeria have stopped distortions to the exchange rate due to ongoing politicking and campaign spendings in the country.”

Continuing, he said the determination of the apex bank to maintain the IMTOs forex window for the over 4,000 BDCs on weekly basis has brought steady liquidity in the market and discouraged unethical market behaviours like hoarding, speculation and frivolous demand.

According to him, the CBN spot rate closed somewhat flat at N306.75/$1 last week from N306.70/$1 in the previous week.

Gwadabe said on its part, ABCON has ensured that its members continued to make dollar accessible to critical end-users like travelers demanding personal and business travel allowances, school fees and medical bills payment abroad among others.

He said the ongoing ABCON automation and configuration of soft token for forex return rendition by over 4,000 BDCs nationwide will enhance transparency and financial integrity of the operators.

“This feat will no doubt strengthen the effectiveness of the technical compliance of the anti money laundering and counter terrorism financing laws and help Nigeria’s assessment into the Financial Action Task Force coming up next year,” he stated.

The ABCON boss was impressed that increased surveillance by the security agencies on illicit financial flow and controls at the nation’s borders have enhanced the stability in the market.

The exchange rate at the Investors and Exporters forex window current trade at N364/$1, while that of parallel and BDCs stands at N363/$1.