BDCs Emphasize Link Between Naira Recovery And Inflation Mitigation Measures

BDCs Emphasize Link Between Naira Recovery And Inflation Mitigation Measures....KINDLY READ THE FULL STORY HERE▶

The Association of Bureaux de Change Operators of Nigeria (ABCON) has highlighted the impact of the naira’s recovery on the country’s economy, noting a relative decrease in the prices of goods and services. Aminu Gwadebe, the president of ABCON, conveyed this message in a statement released on Saturday, praising the Central Bank of Nigeria’s decision to permit Bureaux de Change to engage in foreign currency operations as a significant factor contributing to the naira’s resurgence.

The ban on BDC operations in July 2001 was part of the CBN’s efforts to stabilize the local currency. However, ABCON had been advocating for the formal inclusion of BDCs in the currency market, a campaign that saw fruition when the apex bank reinstated BDCs in the official forex market in February.

According to Gwadebe, the reintroduction of BDCs has not only increased dollar liquidity in the retail forex market but has also helped in curbing inflation by reducing prices of essential commodities. He emphasized the positive effects of this move, including enhanced public confidence in the local currency and a reduction in illegal economic activities like hoarding and round-tripping.

The positive impacts extend beyond inflation control, with Gwadebe noting reductions in international school fees by 15%, medical tourism costs by 20%, and airfare prices for local and international trips by 25%.

Gwadebe highlighted the ongoing market developments as revolutionary, asserting that a stable naira would attract more foreign portfolio investments. He credited the success to the collaborative efforts between BDCs, the CBN, security agencies, and support from the Presidency.

Looking ahead, Gwadebe called for sustained collaboration between BDCs and the CBN to maintain the positive trajectory in the foreign exchange market. He emphasized the need for continued efforts to uphold market stability and liquidity.

In conclusion, the collaboration between BDCs and regulatory bodies has yielded significant benefits for the economy, instilling confidence and stability in the forex market.

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