Nigeria Business & Finance Updates

ABCON directs BDCs to comply with N380/$ rate

The Association of Bureaux De Change Operators of Nigeria has directed its members 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 also reiterated its assurances to members of the public of continued dollar sale at the new official exchange rate of N380 per dollar.

The association stated this after the new  exchange rate regime that was announced on Friday night by the Central Bank of Nigeria for the disbursement of the proceeds of the International Money Transfer Services Operators.

Under the new exchange rate, the IMTOs would sell to banks at N376 per dollar while the banks would sell to the CBN at N378 per dollar.

The CBN in turn would sell dollars to BDCs at N378 per dollar while the BDCs were 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 the apex bank for exchange rate stability and orderly conduct of the foreign exchange market especially at the retail segment where its members were operating.

The association appealed to members of the public to patronise licensed BDCs to purchase dollars at the N380 per dollar official price, so as to avoid falling victim of currency hoarders and speculators, who were creating impression of dollar scarcity in the economy.

ABCON also urged the public to report to its national secretariat any BDC selling above N380 per dollar.

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It stated that such report should be forwarded to info@abconng.org.

The association added 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 was no pressure in the foreign exchange market to warrant increase in the exchange rate above the official rate.

ABCON 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 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 per cent of Nigeria’s imports.

“One of the consequences of these developments  is a general decline in demand for trade and travel-related services including foreign exchange.”

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