Says operators are not criminals, control only 3 per cent of forex market
…Confirms release of detained members, belongings
The Association of Bureau De Change of Nigeria (ABCON) President Alhaji Aminu Gwadaebe has advised the CBN to revisit the suspension of Bureau De Change companies (BDCs) from forex window to strengthen the currency . This is expected to end the freefall in Naira value since the announcement of plans to redesign Naira notes by the Federal Government. This according to him is better than harassment and seizure of BDCs operators belongings by the EFCC.
The Central Bank Notes (CBN) had announced approval by President Muhammadu Buhari on plans to redesign Naira notes scheduled to kick off December 15th 2022.
It would be recalled that the EFCC Operatives last week Tuesday raided the Wuse Zone 4 axis, the bureau de change trading hub in Abuja and arrested some operators. It’s on record that arrests in Lagos and other states too have been made by the anti-corruption agency.
Speaking to Nigerian NewsDirect, the President ABCON, Alhaji Mohammed Aminu Gwadabe said, “the Generalization and criminalization of the sub sector is regrettable as the volume of transactions is about 3% of the tradable volumes in the market.
“It is worrisome for a total clampdown on operators with registered offices and licenses to operate.”
Gwadabe stressed that “as a result of our leaders’ intervention in the various zones thus so far, those arrested have been released nationwide with all their belongings.”
He said, “While we support and embrace reforms in the sub-sector and are strictly against non compliance of any member with extant rules and regulations guiding the sector.
“We therefore advise that constant dialogue between the authorities and the operators remain germane as BDCs is also a transmission mechanism of the apex bank monetary policies.”
According to him, BDCs over time have provided potent tool for effective CBN monetary stabilization policies.
He said, “In solving the problems, we are urging the authorities to look into supply of the critical retail end of the market by trade liberalization of export proceeds and diaspora remittances.
“We also believe on revisiting the suspension of the BDCs will create further confidence in the market by stimulating the acute liquidity shortages in the sector while achieving clearing market prices and stability.
“We also advise further closing the gap between the fixed and flexible exchange market with its inherent distortions of currency substitution, hoarding and speculation which usually come with heavy pressure on the exchange rate.
“We want to also assure our members that various ways are on the pipelines to ensure return to our business and at the same time calling our members to ensure operating only in their offices while strictly observing the rules of know your customer (KYC), rendition of regulatory and statutory returns and report suspicious transactions that they are likely coming across now that the announcement of new naira redesign is adding pressure in the already fragile exchange rate of our local currency to the index greenbacks.”