Nigerian association seeks intervention window for interbank market

Bureaux De Change operators in Nigeria on Wednesday called on the Central Bank of Nigeria (CBN) to create a special intervention window for its members in the interbank market.

President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, made the call at an interactive session on the flexible exchange rate policy in Lagos, the nation's economic hub.

Gwadabe said the call was because the body expected that there would be some provisions for its members in the new regime.

The CBN had emphasized the exclusion of the BDCs from transactions with banks, which suggested that operators were not playing any useful role in the foreign exchange market, Gwadabe said.

He appealed to the apex bank to restore and enforce the self regulatory status of ABCON, by making its membership a criteria for licensing and renewal.

Gwadabe also urged the bank to develop a framework for regular training for BDCs.

According to him, the association is concerned that if the policy is not properly implemented, it may lead to huge forex related losses by manufacturers.

He said it might also lead to further rise in inflation, decline in Gross Domestic Product (GDP) rate, and widen the gap between the interbank and parallel black market forex rate, among others.

Earlier, Anthony Ikem, Deputy Director of Financial Policy and Regulation Department, CBN, said the operators' proposal to participate at the interbank market was still under consideration.

Ikem said the management of the bank was working on how the BDCs could be accommodated and carried along in the new forex regime.

He urged the bureau de change operators to exercise patience, saying the CBN was aware of the challenges confronting the sub-sector.

Ikem said the policy was still under the watch of the apex bank. Endit