BDC Operators Unveils Roadmap to Salvage Naira as Rate Hits N590/$
The Association of Bureaux De Change Operators of Nigeria (ABCON) said it has developed a roadmap campaign plan with the naira selling at N590 to the dollar at the parallel market that would salvage the local currency and bridge the wide gap in the exchange rate market.
The ABCON National Executive Council (NEC) said, the plan to save the naira was agreed by the body at the end of its meeting in Lagos, where it unveiled strategies to save the local currency, bridge the exchange rate gaps and curb volatility in the forex market.
The naira exchanges at N590 to dollar at the parallel market and N418.75 to dollar at the official market creating a rate gap of N171.25 per dollar.
The ABCON president, Alhaji Aminu Gwadabe, stated that there is an urgent need to enhance dollar liquidity in the market and ensure stability of prices in the economy.
Gwadabe disclosed that these steps would save the local currency and economy from the impact of election spending that has kept inflation at double digits for a very long time.
According to him, the depreciation of the naira against global currencies was due to pressure from rising dollar demand without sufficient liquidity to meet the demands from retail end users, manufacturers and other key players in the economy.
“The naira has consistently come under serious pressure due to dollar scarcity making it difficult for forex end users, manufacturers and key industry players to access dollars needed to meet their needs,” the ABCON president added.
