Market News

By Adedapo Adesanya

The Association of Bureau De Change Operators of Nigeria (ABCON) has commended the Central Bank of Nigeria (CBN) for lifting the suspension of sales of interbank foreign exchange to its members nationwide, saying the move will help the value of the local currency in the near term.

The president of the group, Mr Aminu Gwadabe, said this after the CBN allowed BDC operators to access the official forex market window from December 19 to January 30, 2025, with a weekly cap of $25,000.

The apex bank carried out the move to help meet expected seasonal demand for foreign exchange.

The CBN recently launched the Electronic Foreign Exchange Matching System (EFEMS) to build transparency in the system, but this excluded street forex hawkers. This initiative has fortified the value of the Naira against the US Dollar at the official market.

The platform, which became operational on December 2, 2024, has enhanced operational efficiency in Nigeria’s FX market, with banks mandated to be on the system to trade forex.

Mr Gwadabe expressed delight that CBN also considered its members’ accessibility to the new platform through the banks.

“This development is a testament to the CBN’s recognition of our third-level roles in the foreign exchange market architecture,” he said.

He listed benefits to be achieved in the implementation of the circular to include job creation, taming inflation, and boosting FX liquidity to the retail end, among others.

“To our members, it will revitalise our operations, making us functional and profitable.

“It will also improve our compliance obligations to security and monetary agencies.

“I therefore urge all our members to act within the directives in the circular and ensure the desired result of the appreciation of our local currency is sacrosanct,” he said.

According to him, BDCs should render their returns regularly, operate inside their offices and ensure seamless automation of their process.

“Finally, I plead with the banks to ensure transparency, level playing field in the discharge of their responsibilities to our members nationwide,” he said.