In a bid to help create stability in the foreign exchange market as a result of uncertainties in the market due to crash in crude oil prices globally, the Association of Bureau De Change Operators of Nigeria (ABCON) has given assurances to the public of continued sale of dollars at the official price of N360 per dollar.
This was contained in a statement, which was issued by ABCON to members of the public, urging them to patronize Central Bank of Nigerian (CBN) licensed BDCs to buy dollars at the official price, in order to avoid falling victim of currency hoarders and speculators who is creating the impression of dollar scarcity in the economy.
In the statement, ABCON pointed out that there is no pressure in the foreign exchange market to necessitate an increase in the exchange rate above the official rate.
Going further in its statement, ABCON said, “In recent times, governments across the world, in a bid to stop the spread of the deadly Covid-19 virus, have imposed travel restrictions which have led to a sharp decline in the volume of global passenger travel.
“Trade is also at its lowest level globally due to widespread shutting down of businesses in most countries especially China which accounts for about 25% of Nigeria’s import.
“One of the consequences of these developments is the general decline in demand for trade and travel-related services including foreign exchange. In recent times ABCON has observed a steady decline in demand for dollars across the various categories of forex end users.
“Based on this observation and information from BDC members of ABCON, we can categorically state that demand for dollars is at one of its lowest points in the market. Furthermore, CBN has sustained its weekly dollar sale to BDCs at the same level, hence keeping dollar supply constant and eliminating any apprehension of scarcity or rationing of forex.
“In view of the above, we believe there is no need for anybody to buy dollars from anyone at the exchange rate above the official rate. CBN sells dollars to BDCs at N357 per dollar while BDCs are mandated to sell to the public at N360 per dollar for eligible transactions namely, BTA; PTA; Medicals; Mortgage; and School fees.”
The association went further to assure members of the public of enough supply of dollars to meet up with the demand of all the above-mentioned transactions at the CBN approved rate of N360 per dollar.
It could be recalled in an earlier report by Nairametrics, CBN, in a bid to address the panic in the foreign exchange market, had assured the public of its decision not to devalue the Naira as the fundamentals do not support that.
The apex bank cautioned fraudulent and unscrupulous players in the forex market against sharp practices as there will be consequences or sanctions which include heavy fines or even revocation of operating licenses.