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Liquidity boost to BDCs will checkmate onslaught on Naira

2 Min Read
naira

Liquidity boost will checkmate the recent onslaught on the Naira by speculators and currency hoarders, Alhaji Aminu Gwadabe has said.

Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON) said this when he spoke with the News Agency of Nigeria on Tuesday in Lagos.

He said that creating more windows for BDCs to source for Forex could change the game in the sector.

According to him, the spike at the parallel market is artificial and not tenable, adding that its intended goal is to pressurise regulators to succumb to a further depreciation of the Naira.

 

 

The ABCON chief decried the diversion of a large chunk of Diaspora remittances to the parallel market.

“Most of the inflows are not even coming to the economy but held abroad for Non Derivable Funds (NDF) transactions and `hawala’ operations in the international markets in the UK and Asian countries.

“The hawala business is the payment of dollar to a local account and the collection of cash- dollars abroad. It is mostly operated in Dubai, China and recently the U.S and U.K,’’ Gwadabe said.

NAN reports that the spike in the Naira exchange rate has continued unabated, with the Nigerian currency exchanging at N507 to a dollar at the parallel market. (NAN)
FBO/AK/MO

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