Tighten Access To Forex For Non-Oil Exporters- ABCON Tells CBN

The Association of Bureau De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to tighten access to foreign exchange (forex) for non-oil exporters.

ABCON President, Dr. Aminu Gwadabe, emphasized the need for this measure during a speech in Lagos on Thursday.

Gwadabe stressed that restricting non-oil export domiciliary account holders from accessing forex through the official market would bolster the availability of dollars and bolster the country’s financial reserves.

In his address, Gwadabe highlighted a concerning trend where certain companies and manufacturers, despite having significant dollar reserves from non-oil exports, are obtaining forex from the official market to fund Naira loans.

He suggested, “We therefore advise for the review of the guidelines on holding currencies on non-oil export accounts to a maximum of 48 hours, to borrow from the South African policy on the operations of non-oil exports domiciliary account proceeds.”

ABCON also urged the CBN to refine its policies and circulars into legislation concerning the forthcoming reforms in the BDCs sector. Gwadabe emphasized the need for clarity and assurance for potential investors in the BDC industry.

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Additionally, ABCON called for a separation of ownership and operations of the FMDQ (Financial Markets Dealers Quotations) and affirmed its commitment to engaging its members with various stakeholders in the industry.

This plea comes amidst recent regulatory actions by the CBN, including the prohibition of foreign currency-denominated collateral for Naira loans in banks and the sale of USD to BDCs at N1,101/$. Reports indicate that Nigerians hold approximately $30 billion in domiciliary accounts, prompting the federal government to explore measures to boost liquidity in the forex markets.

Finance Minister Wale Edun disclosed plans for the issuance of local foreign currency-denominated bonds in the second quarter of 2024 to incentivize holders of USD in domiciliary accounts to invest.

ABCON’s call underscores the urgency to address forex access and utilization to support Nigeria’s economic stability and growth.