The strategic partnership between the Central Bank of Nigeria and the Association of Bureaux De Change Operators of Nigeria on foreign exchange supplies and sustenance of market integrity helped naira stability last year.
ABCON President, Aminu Gwadabe, who disclosed this to newsmen at the end of year briefing in Lagos, said both the apex bank and ABCON worked together in the course of the year to achieve exchange rate stability, which is one of the agenda set by the CBN Governor, Godwin Emefiele, at the beginning of his tenure.
Gwadabe said the partnership between both institutions would continue in the new year to make naira sovereign in the forex market.
“The strategic partnership between the Central Bank and ABCON continued to make the naira sovereign in the foreign exchange market. The opening market rate, N360/361 to a dollar, on the two-way quote has been stable. This sustained stability made the Bureaux De Change to continue to be the potent monetary policy tool of CBN exchange rate managements,” he said.
According to the ABCON boss, the market distortions by forex speculators, rent seekers, currency hoarders and frivolous demand that usually endangered naira stability have been successfully checkmated. He said it was no longer profitable to attack the naira in the market.
The foreign exchange rates collected across different markets and released by ABCON showed that last year’s closing rates in Lagos were: buying/selling rates for dollar ( N358/359.5); Pounds Sterling, N452/N457; and Euro, N404/N409.5, respectively.
In Port Harcourt, dollar buying/selling rates closed the year at N359/361; Pounds Sterling, N457/N464; and Euro, N405/N408 respectively.
In Abuja, dollar buying/selling rates closed last year at N359/360; Pounds Sterling, N464/N467; and Euro, N407/N410 respectively. In Kano, dollar buying/selling rates for last year were at N359/360; Pounds Sterling, N465/N472; and Euro N407/N411 respectively.
Gwadabe said that ABCON, last year, created Naijabdcs.com, a live rate engine room, created to provide uniform rate for all BDCs across the country.
Gwadabe said the local currency stability had also been achieved in the official market, where the exchange rate closed the year at N307 to a dollar despite huge campaign spending by political parties.
He disclosed that both the CBN and ABCON had continually ensured that foreign exchange demands at the retail end of the market were met.
He said that the sustenance of dollar supply to over 4,000 BDC operators across the country, through the International Money Transfer Operations forex window, had helped the status of the local currency.
“The naira remains stable despite political parties’ campaign spending across the nation. The strategic partnership, actions and pre-actions of the CBN and ABCON have stopped distortions to the exchange rate due to ongoing politicking and campaign spending in the
country.
ABCON has, on its part, ensured that its members continue to make dollar accessible to critical end-users like travelers demanding personal and business travel allowances, school fees and medical bills payment abroad among others,” he
said.
