The Association of Bureaux De Change Operators of Nigeria (ABCON) the 163 per cent increase in dollar sales to bureaux de change (BDCs) which amounted to $3.1 billion in the first half of the year, helped in sustaining exchange rate stability and protected 25,000 jobs in the sub-sector.
ABCON President, Alhaji Aminu Gwadabe stated this while commenting on the half year 2018 draft economic report released by the Central Bank of Nigeria (CBN) recently.
The report had shown that CBN dollar sales to BDCs rose by 163 per cent to $3.1 billion in the first half of the year, from $1.2 billion in the corresponding period of 2017.
The CBN had in May this year, increased weekly dollar sales to each BDCs by 50 percent to $60,000 per week from $40,000 per week.
Gwadabe noted that the 163 percent increase in foreign exchange sales to BDCs was attributed to the success recorded in the Investors and Exporters (I&E) window introduced by the CBN and the transparency in the forex market, facilitated by the live exchange rate platform introduced by ABCON.
He added that the development enabled the central bank to empower BDCs in achieving sustained exchange rate stability, convergence of exchange rates which by extension discouraged rent seeking and other speculative tendencies in the market.
On the impact of the increased forex sales to BDCs, Gwadabe said: “The overall impact in the economy includes employment generation of over 25,000 in the BDC sub sector and enhanced investors’ confidence.”
He added that the recent efforts of the association to automate operations of BDCs will help to consolidate on these gains.
“The ABCON automation drive of BDCs operations designed to enhance their visibility and attractiveness is already giving them an information technological (IT) edge in the quest to become direct agents of international money transfer operators”, he said.