GWADABE CALLS ON THE CBN TO USE BDCS TO ELIMINATE EXCHANGE RATES AND IMPROVE MARKET STABILITY

Alhaji Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), has asked the Central Bank of Nigeria (CBN) to utilise Bureaux De Change in stopping and ushering in currency market stability.

BDCs are small retail end institutions licensed to sell Personal Travel Allowance (PTA), Business Travel Allowance (BTA), school fees and medical bills payment, at the critical retail end of the FX market, according to the Central Bank of Nigeria (CBN) Operational Manual.

However, on the functioning of the sub-sector remains restraining. and hinder BDCs' ability to fulfill their constitutional functions in the forex market and economy.

Gwadabe said for coordination between the BDCs and the CBN in the adoption of market-friendly policies that would increase the BDCs' effect in the market and support stability. The ABCON CEO stated that the hasty generalization that criminalizes the BDC sub-sector as being responsible for all market crises and infractions such as selling dollars at higher premiums than the regulatory limit, promoting loss of confidence in the near future, and promoting multiplicity of exchange rates is not in the best interests of the market and economy.

He added that, since 2006, the BDCs have given policymakers a window into attaining their mandate of currency stability and price balance. As a result, he advocated for the reintegration of BDCs into the FX market ecosystem in order to preserve their economic functions.

Gwadabe stated that BDCs have been effective and inventive in contributing to the currency market for many years.

“To solve the challenges affecting the FX market, now is the moment to enlist BDCs in market of stability and delivery of the market to the promised land,” he added.

Gwadabe claims that the operators have been preparing for this moment for years by introducing technology into their operations and promoting efficiency and transparency in their enterprises.

ABCON, for example, educates Compliance Officers to ensure they understand their responsibilities, notably in terms of monthly data rendition and tracking Through compliance, unlawful currency pours into the market. programs.

According to him, the BDCs would continue with the NFIU, CBN.

“In accordance with the terms of the Bank and Other Financial Institutions Act (BOFIA), as amended, every BDC submits returns to the CBN in the required format and within the CBN's deadline.” “The BDCs' documents are easily available to CBN examiners as and when required, including customer due diligence, corporate governance, and tax reports,” he added.

He stated that ABCON has established itself in the BDC business over the years, making many sacrifice to ensure the sector continues to prosper despite all obstacles.

According to Gwadabe, BDCs have impact with operational digitalization since operators may now file their weekly, monthly, or quarterly reports from anywhere without clustering.

He stated that ABCON digitized BDC operations with the official launch and takeoff of the ABCON Live Run Automation Portal in Lagos, which has the CBN's support.

He noted that the ABCON Live Run Automation Portal abolished decades of laborious completion of regulatory reports by BDCs.

The portal, which is a game changer in the Nigerian BDC Industry, is the final stage of automating all BDC operations and integrating them with CBN, NFIU, and Nigeria Inter-Bank Settlement System (NIBSS) operations for improved regulatory compliance and seamless operations in line with global best practices.

Gwadabe reaffirmed ABCON's commitment to increasing forex liquidity, meeting its regulatory duty of delivering forex closer to end users, and supporting the CBN's aim.

He stated that such a step would assist operators and integrate the large number of unauthorized market operators across the equilibrium, transparency, competition, and the elimination of broader premiums.

“The BAFEX will prohibit currency substitution, hoarding, and the way cash is being hold illegally across porous borders, while reducing to the bare minimum the dual consequences of flexible and managed the economy,” he stated.