Bureau De Change urges CBN to extend license deadline

The Association of Bureau De Change Operators of Nigeria (ABCON) has appealed to the Central Bank of Nigeria (CBN) to extend the deadline for BDC operators to reapply for new licences.

The association also called for a review of the stringent conditions attached to the reapplication process.

ABCON President, Dr. Aminu Gwadabe, made the appeal in a statement on Wednesday in Lagos.

Gwadabe suggested that the CBN collaborate with BDCs, leveraging their capacity as players in the forex market to achieve adequate liquidity and lower volatility on the retail end, thereby stabilising the economy.

He cautioned against a rate war in the interbank market, which could be detrimental to the naira.

In spite the CBN’s interventions injecting millions of dollars into the interbank market, Gwadabe noted that these efforts had not yet yielded the expected positive impacts.

He expressed appreciation for the CBN’s recent resumption of forex sales to BDCs as part of various policy measures to curb volatility in the retail market.

According to Gwadabe, BDCs play a crucial role in achieving adequate liquidity and reducing volatility in the retail end of the market.

He emphasised that BDCs remain the most effective tool for implementing the apex bank’s foreign exchange policies, providing efficient demand monitoring and price stability.

He urged the CBN to enhance the volume and frequency of interventions at the retail end through BDCs, noting that it had shown positive results recently.

Gwadabe recommended that the CBN either extend the deadline for BDCs to reapply for new licences or immediately review the restrictive requirements for reapplication.

He suggested that the apex bank consider a pegged exchange rate policy to build market confidence and strengthen fiscal buffers to fulfil its mandate.

Gwadabe also urged fiscal authorities to maintain integrity in all their dealings, ensuring that their policies were relevant and acceptable to the Nigerian populace.