ABCON calls on CBN to end multiple exchange rate regime

The Association of Bureau De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to end the multiplicity of foreign exchange windows and the resultant multiple exchange rate regime in the nation’s economy.

It also said it had concluded plans to launch the naijabddc.com, a platform designed to provide credible and up-to-date foreign exchange rates to the public.

The website is expected to be launched during the second quarter of this year, according to the first edition of the Quarterly Economic Review of the association.

The body says:  “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 ranging from one for Muslim pilgrims going to Saudi Arabia, a retail rate set by licensed BDCs, a rate for foreign travel and school fees, and the official and black market rates.

The association said there was the need to begin the process of integrating the BDCs into the CBN Investors & Exporters FX windows.

It said this would deepen the market and unify the exchange rate, since the CBN Investors & Exporters window services the SMEs liquidity needs for forex exchange.

The Acting President, ABCON, Alhaji Gwadabe Aminu, was quoted as saying “The issue of multiple rates is a thing we have been discussing with the CBN. It is not helping a lot of companies to plan. So, we are imploring the CBN who is the custodian of exchange rate management to work towards a single exchange rate that would favour the economy.

He said ABCON was also concerned about the ripple effects of the forthcoming 2019 elections and the preceding campaign process on 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.