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ABCON directs BDCs to sell forex at CBN’s rate - Seemberg News

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ABCON directs BDCs to sell forex at CBN’s rate

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THE Association of Bureaux De Change Operators of Nigeria (ABCON) has directed bureaux de change (BDCs) across the country to comply with the new official exchange rate of N380 per dollar as well as other provisions of the new foreign exchange regime.

ABCON assured the public of continued dollar sale at the new official exchange rate of N380 per dollar.

The association stated this following the  new  exchange rate regime announced by the Central Bank of Nigeria (CBN) for the disbursement of the proceeds of the international money transfer services operators (IMTOs)

Under the new exchange rate regime, the IMTOs will sell to banks at N376 per dollar while the banks will sell to the CBN at N378 per dollar. The CBN in turn will sell dollars to BDCs at N378 per dollar while the BDCs are mandated to sell to the public at N380.

Expressing support to ensure effective implementation of the new exchange rate regime, ABCON said it would continue to partner with the apex bank  for exchange rate stability and orderly conduct of the foreign exchange market especially at the retail segment where its members operate.

To this end, the association appealed to the public to patronise licensed BDCs to buy dollars at the N380 per dollar official price for their -BTA, PTA, medicals, mortgage and school fees so as to avoid falling victim of currency hoarders and speculators, who are creating impression of dollar scarcity in the economy.

The association stated  that given the sharp drop in demand for dollars, caused by the impact of the coronavirus on global trade and travels as well as continued dollar injection by the CBN, there is no pressure in the foreign exchange market to warrant increase in the exchange rate above the official rate.

The association stated: “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 sharp decline in the volume of global passenger travel.

“One of the consequences of these developments   is 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 point in the market.

“Furthermore the 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.

“We believe there is no need for anybody to buy dollars from anyone at exchange rate above the official rate.

“In view of the above, ABCON hereby has appealled to members of the public that there is enough dollar supply to meet demand for any of the above eligible transactions at the CBN approved rate of N378 per dollar.

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