The umbrella body of the bureau de change operators in the country, Association of Bureaux De Change Operators of Nigeria (ABCON) have asked that the Central Bank of Nigeria (CBN) announce a downward review of the exchange rate in its segment.
The BDCs are asking for a N10 cut in the exchange rate from N360 that currently holds to N350/$1. While the BDCs claim that this position will ensure that the ongoing recovery of the naira against the dollar, currently at N367 per dollar, is sustained, the personal motives for asking for such cut is also evident.
At the current exchange rate, BDCs stand to make just N2 to N3 on every dollar sold. Since they are usually pegged to $40,000 weekly, that amounts to N120,000 weekly which many of them do not think is profitable enough. If their proposition is considered, though, then BDCs will have a N12 margin from what they are offered at the official window, thus increasing their potential gains to as much as N480,000 per week.
“The CBN should be proactive enough to quickly review the BDC buying rate to bring the foreign exchange transfer rate down and boost market stability. The BDC rate should be brought down to N350/$1 for now and see the positive impact on the local currency,” Alhaji Aminu Gwadabe, ABCON President claimed. “For now, the parallel market operators are taking over our business because BDCs rates and their selling rates are the same and this has to change”