By Obinna Chima
The Association of Bureaux De Change Operators of Nigeria (ABCON) has directed bureaux de change (BDCs) across the country to comply with the new exchange rate of N380 per dollar for the sub-sector as well as other provisions of the new forex regime.
The association also reiterated its assurance to members of the public of continued dollar sale at the new rate of N380 per dollar for its members.
According to a statement yesterday, the association gave the directive following the new exchange rate regime announced Friday night 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 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 are mandated to sell to the public at N380.
ABCON said it would continue to partner with the CBN to ensure exchange rate stability and orderly conduct in the forex market especially at the retail segment where its members operate.
“The association appeals 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 are creating impression of dollar scarcity in the economy.
“ABCON also enjoins the public to report to its national secretariat any BDC selling above N380 per dollar,” saying such report should be forwarded to email@example.com.
The association stated that given the sharp drop in demand for dollars, caused by the impact of the COVID-19 on global trade and travels as well as continued dollar injection by the CBN, there was no pressure in the forex 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 has led to 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 percent of Nigeria’s import.
“One of the consequences of these developments is general decline in demand for trade and travel related services including foreign exchange.”
It pointed out that in recent times ABCON had 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, the association stated that demand for dollars was 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.
“In view of the above, ABCON hereby appeals 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,” it added.