Omodele Adigun

As book makers predicted Naira devaluation this year, the Association of Bureax de Change Operators of Nigeria (ABCON) has urged the public to disregard such forecast and expect foreign exchange (forex) rates’ convergence as the BDC will checkmate any volatility.

Giving the assurance at a sensitisation program for ABCON members in Lagos yesterday, its President, Aminu Gwadabe, said any discussion around devaluation  should be  discouraged, while the unification of the various exchange rates  should be promoted.

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His words: “We have learnt of prediction by Afrinvest that there is going to be a devaluation by 20 per cent in 2020. For us, we don’t think of any devaluation. Yes, unification of the various exchange rates is germane, but any discussion on devaluation as at this critical level of the economy should be  completely discouraged. The Bureau De Change operators are there and we would ensure we give our cooperation to the CBN and the government  so as to checkmate any volatility and spike in the foreign exchange market.

“Devaluation will not do any good,   we can see that. Of course, there is border closure which has improved a lot of activities in the economy. Yet, we are struggling with electricity in terms of its availability and  also Nigeria still remains an import  dependent country; schools’ infrastructure is not there . So we don’t want anything to devalue the Naira further than N360 to one dollar, because as far as BDCs are concerned, the rate of  Naira to a dollar is N360.  All those who are saying N305, N306 to a dollar, for us is not a transaction rate, these are rates for government obligations. It is not for everybody. What percentage of Nigerians get N306 to a dollar? So if unification is for everybody in the market to be buying at N360, that will be fine the BDC already has that kind of rate happening in the market.”

On the sensitisation for members, Gwadabe said it is all about enhancing the capacity of Bureau De Change operators and to also evaluate the outcome of the assessment of the Financial Action Task Force, Inter Governmental Action Group Against Money Laundering in West Africa ( GIABA ), and the Central Bank of Nigeria (CBN) examination. “So far, we also want to celebrate four years of exchange rate stability and compliance in our operations, that’s why we are here. We also want to evaluate our performance in terms of compliance and map out the way forward  for the foreign exchange market.”