By Cynthia Ezekwe
The Association of Bureaux De Change Operators of Nigeria (ABCON), has expressed confidence that the uniform exchange rate policy pronounced by President Bola Tinubu,will boost the inflow of foreign portfolio investment and stimulate the economy.
Aminu Gwadabe, president of the umbrella body for all Central Bank of Nigeria (CBN) licensed Bureaux de Change (BDC),in a media chat, describing it as a right step that will eliminate sharp practices, enhance transparency, competition, foreign investment inflow, and boost the Nigerian economy.
According to Gwadabe, multiple exchange rates give rise to the naira to volatility and results in illegal economic behaviours like hoarding, currency substitution, and round tripping.
“So unifying the exchange rate will bring a competitive rate devoid of all these shenanigans surrounding the misfortune of the naira and enable a true market discovery, which is a market devoid of monopoly,’’he said.
The ABCON president explained that the uniformity of the exchange rate policy will encourage the inflow of foreign portfolio investment, stating that it will make investors comfortable as the market will become liquid for free entry, and free exit.
He noted that the diaspora remittance will also be competitive and there will be incentive for people, stating that the multiplicity of exchange rate is diverting all transactions to an inefficient informal market.
“As a group we endorse, we support, we align with the decision to unify the exchange rate and then the use of the BDCs as a transmission mechanism to achieve that intention of uniform exchange rate,’’ the ABCON president noted. .
He further stated that BDCs have been able to play a role of providing liquidity into the retail end of the forex market which helps in reducing the gap between the buying and the selling rate which will also entail the true value of the naira.
In a similar vein, the Association of Telecommunications Companies of Nigeria (ATCON) also commended the proposed unified exchange rate regime in Nigeria as announced by President Tinubu during his inaugural address on Monday.
Ajibola Olude, executive Sscretary of ATCON, described the plan as a positive development for the telecom industry.
Olude noted that if implemented, a unified exchange rate will ease the burden of sourcing for forex by telecom operators, considering that telecom operators currently buy dollars from the black market, which is very expensive.
According to him, telcos end up using the money meant to buy multiple pieces of equipment to buy just one,due to the high exchange rate,
He also expressed optimism that unifying the exchange rate would allow easy access to forex at equal rates for all players in the economy.
