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Bureau de Change (BDC) operators have requested the Central Bank of Nigeria (CBN) harmonise dollar rates sold by the apex bank to its operators and conventional banks. The BDCs also called for an upward review of their weekly dollar allocations by the regulator from $8,000 to $30,000 as the currencies liquidity improves.

These demands were announced yesterday by Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), who said the harmonisation of bank and BDC rates will enhance fair pricing and competition, instilling greater confidence in the market. He said that the disparities in CBN sale rates places BDC operators in a disadvantaged position, which could facilitate unfavourable currency speculations.

Gwadabe expressed his dissatisfaction with the CBN’s initiation of dollar sales from the International Money Transfer Operators (IMTOS) proceeds, to the BDCs at N381 per dollar while the regulator sells to the banks from interbank market proceeds at N315 per dollar.
Buying at $315 a dollar, Gwadabe said the banks then sell at N375 per dollar. BDC operators however, sell at N399 a dollar considering the rate received from the CBN at N381 per dollar.

The ABCON President explained that increasing weekly dollar allocations sold to the BDCs by CBN will stimulate better dollar liquidity within the economy and see rates plunge. He urged the banks to desist from hoarding the currency, calling on them to ensure unhindered flow of their reserves to help the CBN foster dollar liquidity.

“It is supposed to be a two-way quote whereby both the CBN and banks are pumping dollars into the economy to help the local currency. Today, it is only the CBN that is performing the role while the banks continue to warehouse their dollars. I want the banks to also feed the system with dollars so as to help the local currency sustain ongoing rally,” he stated.

The Naira continues to rally against the dollar at the parallel market in the last one week following CBN’s $180 million intervention that is expected to boost the local currency.