In a bid to achieve exchange rate convergence and enhance the stability of Nigeria’s foreign exchange market, the Association of Bureaux De Change Operators of Nigeria (ABCON) has called upon the Central Bank of Nigeria (CBN) to grant Bureaux De Change (BDCs) digital autonomy in their operations.
ABCON President, Dr. Aminu Gwadabe, released a report yesterday outlining the organization’s plea to the apex bank. Dr. Gwadabe emphasized the importance of allowing BDCs to conduct all their operational correspondences in the digital realm, highlighting the potential benefits such a move could bring to the Nigerian economy.
One of the primary advantages of granting digital autonomy to BDCs, according to Dr. Gwadabe, is the promotion of exchange rate convergence. This move is expected to curb market volatility and stimulate economic growth in the country.
Dr. Gwadabe noted that ABCON has a history of leading its members towards achieving rate convergence in Nigeria. Instances of such achievements include 2006, 2009, and the period from 2018 to 2020, before the outbreak of the COVID-19 pandemic disrupted the markets in 2020.
The ABCON President argued that digital autonomy would enable a true market rate discovery, thereby aligning with the federal government’s harmonized foreign exchange rate policies. It would also facilitate effective monitoring of BDCs’ transactions to ensure compliance with statutory and regulatory requirements.
In addition to its potential economic benefits, Dr. Gwadabe highlighted the positive impact of digital autonomy on the BDC sector itself. With over 40,000 employees working within the sector, this move would not only provide job stability but also usher in transparency, accountability, and ease of supervision in BDC operations.
ABCON has been actively working toward digitizing the operations of BDCs in Nigeria. The introduction of the naijabdcs.com platform in 2018 was a significant step in this direction, aligning with the organization’s vision to modernize and streamline BDC activities in the country.
Dr. Gwadabe urged the CBN to consider diversifying the scope of operation and business models for BDCs, transitioning from cash-based operations to digital payments. He stressed that now is the opportune moment for the CBN to democratize and centralize digital operational mechanisms for all BDCs, ultimately granting them the autonomy to fully embrace digital technologies.
As Nigeria seeks to stabilize its foreign exchange market and promote economic growth, ABCON’s call for digital autonomy for BDCs represents a potential catalyst for change that could shape the future of the country’s currency exchange landscape. The CBN’s response to this appeal will be eagerly awaited by industry stakeholders and the broader financial community.
