Bureau De Change Operators Urge CBN To Lower Dollar Allocations Amid Rising Costs

Bureau De Change Operators Urge CBN To Lower Dollar Allocations Amid Rising Costs

In a recent development, the Association of Bureau De Change Operators of Nigeria (ABCON) has called upon the Central Bank of Nigeria (CBN) to adjust and reduce its prevailing exchange rate below the N1,251/$ set for Bureau De Change (BDC) operators due to escalating expenses…..READ ALSO President Of Association Of Bureau De Change Operators Exposes Why Naira Is Gaining Strength

This appeal comes as a response to a significant shift where, for the first time in 15 years, the parallel market rate of N1,235/$ is lower than the official rate of N1,252/$, which is the buying exchange rate designated for BDCs.

ABCON President, Aminu Gwadabe, conveyed this request in a letter addressed to the Director of the Trade and Exchange Department at the CBN.

The association highlighted challenges faced by BDCs, including delays in receiving dollar allocations despite funding their accounts at the specified rate, exposing them to exchange rate risks and potential losses.

With the rapid appreciation of the naira in various markets, many BDCs find themselves at risk of significant income and capital losses if they sell at the current open market rate of N1,235/$, having purchased dollars at N1,251/$.

ABCON emphasized the necessity for a downward review of the applicable exchange rate to align with current market dynamics, enabling members to operate profitably and sustainably.

The statement underlined concerns about the reluctance of members to bid for allocations, fearing financial losses due to market disparities.

In light of these challenges, ABCON urged the CBN to consider the prevailing market realities and adjust the exchange rate downward to facilitate a more conducive operating environment for BDCs.