Why This Group Wants CBN To End Multiple Exchange Rate Regime
Africa’s biggest economy, Nigeria has at least six exchange rates.
There is one for Muslim pilgrims going to Saudi Arabia. There is another for licensed Bureau de Change operators, a rate for foreign travel, medical and school fees, and then the official and black-market rates.
There have been calls from several quarters for the CBN to end these rainbow rates but that has yet to happen.
The latest to join in the calls to end foreign exchange rate multiplicity is the Association of Bureau De Change Operators of Nigeria, ABCON.
ABCON says there is a need for the CBN to end the multiplicity of foreign exchange windows and the resultant multiple exchange rate regime in the economy.
It also said it had concluded plans to launch the naijabddc.com, a platform designed to provide credible and up-to-date foreign exchange rates to the public.
The website is expected to be launched during the second quarter of this year, according to the first edition of the Quarterly Economic Review of the association.
“ABCON is concerned about the multiplicity of foreign exchange windows operated by the CBN and the resultant multiple exchange rate regime in the economy,” ABCON said, noting that there was the need to begin the process of integrating the BDCs into the CBN Investors & Exporters FX windows.
This, it said, would deepen the market and unify the exchange rate, since the CBN Investors & Exporters window services the SMEs liquidity needs for forex exchange.
The Acting President, ABCON, Alhaji Gwadabe Aminu, was quoted as saying that “the issue of multiple rates is a thing we have been discussing with the CBN. It is not helping a lot of companies to plan. So, we are imploring the CBN who is the custodian of exchange rate management to work towards a single exchange rate that would favour the economy.”
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