CBN’s $3.1bn sale to BDCs sustained naira stability, protects jobs
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The dollar sales to Bureaux De Change Operators (BDCs) by the Central Bank of Nigeria (CBN) rose by 163 percent to $3.1 billion in the first half of the year (H1’18) from $1.2 billion in the corresponding period of 2017 (H1’17).
This, however, helped to sustain exchange rate stability and protected 25,000 jobs in the sub-sector, Aminu Gwadabe, president of Association of Bureaux De Change Operators of Nigeria (ABCON), said while commenting on the half year (H1’18) economic report released by the CBN last week.
The report states: “The significant increase in BDC sales, reflected the bank’s policy to increase the supply of foreign exchange to small end-users.”
The CBN on May 27, 2018, increased weekly dollar sales to each BDCs by 50 percent to $60,000 per week from $40,000 per week.
Gwadabe noted that the 163 percent increase in foreign exchange sales to BDCs was attributed to the success recorded in the Investors and Exporters (I&E) window introduced by the CBN, and the transparency in the forex market, facilitated by www.naijabdcs.com, the live exchange rate platform introduced by ABCON.
He said the development enabled the apex bank to empower BDCs in achieving sustained exchange rate stability, convergence of exchange rates, which by extension discouraged rent-seeking and other speculative tendencies in the market.
On the impact of the increased forex sales to BDCs, Gwadabe said: “The overall impact in the economy includes employment generation of over 25,000 in the BDC sub-sector and enhanced investors’ confidence.”
He said the recent efforts of the association to automate operations of BDCs would help to consolidate on these gains.
“The ABCON automation drive of BDCs operations designed to enhance their visibility and attractiveness is already giving them an information technological (IT) edge in the quest to become direct agents of international money transfer operators,” he said.