The President of the Bureaux de Change Operators in Nigeria, Aminu Gwadebe, has said that their collaboration with the Central Bank of Nigeria, the presidency, and other agencies has led to the recent strengthening of the naira.
Gwadebe noted this in a statement released on Saturday, March 30, by the Association.
The Association’s president expressed appreciation for the Central Bank of Nigeria’s decision to permit Bureaux de Change to participate in the foreign currency market, stating that it significantly contributed to the naira’s resurgence.
Gwadebe also noted that the appreciation of Naira “has started reining in inflation and prices of most necessities” are now lower.
The statement read, “The current development in the foreign exchange market has started reining in inflation as the prices of most necessities are becoming relatively lower in the market. On a most serious note, the positive impacts also include heightened confidence of the public in the local currency as it eliminates currency substitution behaviour, which has hitherto been adding pressure on our local currency.
“The reconsideration of the BDCs into the mainstream foreign exchange market has not only demystified illegal economic behaviours such as hoarding, rent-seeking, round-tripping, and FX holding positions but also led to the emergence of exchange rate convergence.”
“It is our view that the collaboration between the BDCs, CBN, National Security Adviser, Economic and Financial Crimes Commission, as well as support from the Presidency, helped in creating the opportunity for building the foundation of this achievement. Overall, the combination of these actions has induced an atmosphere of public calmness, confidence, hope and liquidity in the markets.
“We call, therefore, on the CBN to continue to calibrate the existing relationship between the BDCs and the apex bank to sustain the success story,” Gwadebe added.
