Alhaji Aminu Gwadabe, President, Association of Bureaux Des Change Operators of Nigeria (ABCON), says his members will align with President Bola Tinubu’s position on unified exchange rates.
Gwadabe stated this while reacting to Tinubu’s inaugural speech on Monday in Lagos.
Tinubu had mandated the Central Bank of Nigeria during his inauguration to work toward a unified exchange rate.
According to the President, this will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.
He said exchange rates unification would remove the illegal economic behaviours of round tripping, hoarding and currency substitutions in the economy.
According to him, multiple exchange rates are grounds for Naira volatility and market distortions.
This, he said, was germane to end the multiple exchange rate for a true market price discovery that would enhance liquidity in the retail end sector of the market.
“The diaspora remittances that are huge, cheap and constant are the hanging fruits in the short time to achieving the desired intention.
“The Bureau de Change (BDC) plays the role of meeting the needed liquidity in the retail exchange market.
“It reduces drastically the spread between buying and selling rates, where the spike is most pervasive as most transactions with the multiple exchange rates have moved to an inefficient informal market,’’ he said.
Gwadabe said licensed BDCs which were spread across zones remained the most portent and veritable transmission mechanism of achieving a stable Naira.
He urged government to leverage them for quick fix of the lingering exchange through securitisation of the proceeds of diaspora remittances and breaking the monopoly of few players in the market.
He also commended the president on plans to improve Nigeria’s weaker economic fundamentals, like high interest rates, high inflation rates, and dwindling reserves.
He praised Tinubu’s pledge to job creation adding that youth employment would improve the fortunes of the local currency.