The Association of Bureaux de Change Operators of Nigeria (ABCON) has stated that the recent recovery of the naira has contributed to a notable decrease in the prices of goods and services across the country.
In a statement issued on Saturday, Aminu Gwadebe, the president of the association, lauded the Central Bank of Nigeria’s decision to permit Bureaux de Change to participate in the foreign currency market, citing it as a pivotal factor in the naira’s recovery.
The CBN had previously banned the operations of BDCs in July 2001 as part of measures aimed at stabilizing the local currency.
ABCON has been at the forefront of advocating for BDCs to be formally reinstated in the currency market. In February, the apex bank reinstated BDCs in the official forex market.
According to the statement, Gwadebe highlighted that, alongside monetary policy tightening leading to interest rate hikes and increased investment in government instruments, as well as the clearance of forex backlog forward commitments, the reintroduction of BDCs had notably enhanced dollar
Gwadebe emphasized, “The recent developments in the foreign exchange market have begun to alleviate inflationary pressures, as prices of essential commodities are witnessing a relative decline in the market. Importantly, this positive trend has also fostered public confidence in the local currency, thereby mitigating currency substitution behaviors that previously exerted pressure on our domestic currency.