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Naira Appreciates Curbing Inflation, Says BDC Association

The Association of Bureaux De Change Operators of Nigeria (ABCON) credits the recent appreciation of the Naira to the Central Bank of Nigeria’s (CBN) decision to reintegrate Bureaux De Change (BDCs) into the official foreign exchange market.

ABCON President, Aminu Gwadabe, issued a statement on Saturday outlining the association’s perspective. He highlights the positive impact on inflation, with a decrease in the prices of essential goods and services. Additionally, Gwadabe cites renewed public confidence in the naira, reducing prior tendencies to hold foreign currency.

The statement details how BDC reintroduction, alongside tightened monetary policy, has boosted dollar liquidity and transparency in the foreign exchange market. Gwadabe points to a reduction in illegal forex activities like hoarding and speculation.

The improved market conditions have yielded tangible benefits, according to Gwadabe. He cites a 15% decrease in international school fees, a 20% reduction in medical tourism costs, and a 25% drop in airfare prices.

ABCON emphasises the ongoing success, noting that the naira currently trades lower than the official BDC selling rate. Gwadabe attributes this stability to CBN Governor Dr. Olayemi Cardoso’s recognition of BDCs’ role in exchange rate management.

Looking ahead, ABCON foresees promising prospects for foreign exchange earnings, fueled by rising foreign portfolio investments. Gwadabe credits the collaborative efforts of BDCs, the CBN, security agencies, and the presidency for fostering market confidence and liquidity.

The association concludes by urging the CBN to maintain a calibrated relationship with BDCs to ensure the continued success of these measures.

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