The President of The Association of Bureau De Change Operators of Nigeria, Alhaji Aminu Gwadabe, has said that the association believes that the introduction of the licensed forex dealer would greatly enhance transparency in the distribution of forex and in turn, boost the value of the naira. He thus placed his faith in the recovery of the Naira’s value from Monday, when Travelex, an authorized forex dealer would begin operations.
Speaking of the benefits of the forex dealer, Gwadabe said speed of operations and transparency would be greatly improved. Travelex has the technology to pay about 1,000 BDCs within two hours. The new arrangement also eliminates relating with bank account officers”.
This will lead to increased liquidity in the market and imbue confidence in investors and market speculators in addition to removing the bottlenecks in the distribution chain.
Gwadabe also agreed with the CBN’s decision to retain Monetary Policy Ratio at 14% as he said “The more naira at the disposal of Nigerians, the more they want to convert it to dollars for speculation purposes” which will in turn pile further pressure on the exchange rate.
Parts of this article originally appeared in Sweet Crude Reports