The Central Bank of Nigeria (CBN) has been urged to take into account approving the Association of Bureau De Change Operators of Nigeria’s (ABCON) request to inject liquidity into the foreign exchange market.
This is a part of measures to halt the Naira’s downward trend, which has fueled inflation in the nation.
Also Read: NIGERIA’S JULY 2023 INFLATION RISES TO 24.08% – NBS
Aminu Gwadebe, the president of ABCON, reaffirmed the importance of his organisation in the market in a news release. They are essential to the top bank’s monetary policy, in his opinion.
“I quickly want to advise the apex bank to leverage on the BDCs and allow them access banks’ autonomous window and agency of international money transfer operators. The BDCs are effective tools of the transmission mechanism of the CENTRAL BANK MONETARY POLICIES,” Gwadebe said.
Doing so would mean reinstating the 2015 policy guidelines which granted them freedom to offer liquidity at the retail point of the forex market.
Gwadebe claims that allowing Bureau De Change operators to offer liquidity increases the number of players performing that action, thus reducing the chances of price slippage. Essentially, the Naira benefits.
Justifying the proposal to reinstate the 2015 guidelines, Gwadebe cited the contributions of Bureau De Change vendors to stabilizing the Naira in 2006, 2009, and 2017.
This appeal follows the announcement by the Acting CBN Governor, Fola Shonubi that President Bola Tinubu had approved a few action plans. The strategies are expected to help stabilize the Naira by tackling some issues, particularly the one in the parallel market.
Discover more from News Round The Clock
Subscribe to get the latest posts to your email.
