Naira Recovery Stalls as BDC Operators Struggle to Buy Forex from Banks – ABCON

Bureau De Change (BDC) operators in Nigeria are finding it difficult to purchase foreign exchange from banks, according to the Association of Bureau De Change Operators of Nigeria (ABCON). The challenge arises because the parallel market rate is now lower than the interbank sales price, making it unprofitable for BDCs to buy from banks. ABCON President, Aminu Gwadebe, highlighted that the naira has gained stability and appreciation, leading to a rare scenario where banks sell forex at a higher rate (N1,505/$) than the black market (N1,503/$). He called on the Central Bank of Nigeria (CBN) to set a structured percentage for banks’ sales of diaspora remittances and investment proceeds to BDCs, ensuring sustained forex supply and reducing speculative activities. Gwadebe also urged the CBN to continue its intervention in the forex market to support the naira and called on the government to tackle inflation, which remains a key economic concern. ABCON recently credited the naira’s appreciation to the successful implementation of the CBN’s forex policy, which allows banks to sell interbank forex proceeds to BDCs. Increased forex inflows and growing investor confidence have also contributed to the naira’s improved performance.

Legacy contact: Don Richie | Phone: +2348063973427 | Email: [email protected]