Business
Association Tasks CBN On Forex Rates Harmonisation
President, Association of Bureaux Des Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe has called on the Central Bank of Nigeria (CBN) to harmonise the rate at which it sells foreign exchange to commercial banks and its members.
Gwadabe told newsmen yesterday in Lagos, that the disparity between the rates had forced about 50 per cent of its members to boycott the Central Bank of Nigeria (CBN) window.
According to him, the CBN sells Forex to banks at N357 per dollar, while banks are expected to sell at N360, on the other hand, BDCs buy at N360 from the CBN and are expected to sell at N362.
The financial expert noted that its members incurred losses the moment they accessed the CBN window, which had forced many of them out of market.
“The direct implication of this will be the loss of about 20,000 jobs nationwide as the tactical edging of BDCs out of the market will result in the sacking of its workers across the nation,’’ Gwadabe said.
The ABCON chief appealed to the CBN to make BDCs direct agents of International Money Transfer Service Operators (IMTSO) since they were fully automated, and transparency had remained their watchword.
Gwadabe explained that the rate of disparity in accessing the CBN window had elevated parallel market operators to the delight of the enemies of the Naira.
He said that the edging of BDCs out of the market would inhibit financial inclusion as BDCs make N30 billion weekly turnover which translates to commission for the commercial banks.
Gwadabe said that BDCs remain the potent agent for transparency and price stability in the market as exemplified during the peak of the recession when exchange rate volatility was blown out of proportion.
He noted that if the parallel market, which selling rate was presently lower than that recommended for the BDCs, was allowed to dictate the market price, there may be the resurgence of fake currency in the market.
“Allowing the parallel market operators to dictate the price in the market will erode investors’confidence and that of the International Monetary Fund (IMF) in the nation’s economy.
“This also will be counterproductive to the mandate of the CBN and that of the IMF.
“It will run counterproductive to the IMF mandate of price discovery and stability.
“Allowing the parallel market to dictate the price will also fuel the existing multiple exchange rate regime,’’ Gwadabe said.
The ABCON chief recalled that at the peak of recession, with an external reserve of 27 billion dollars, and dwindling oil revenue, BDCs made a cogent suggestion to the CBN that gave birth to accessing the IMTSO window.
He said that accessing the window became an alternative to the depletion of the external reserve.
According to him, BDCs have remained strategic partners with the CBN in ensuring price stability and transparency in the foreign exchange market.
Our correspondent reports that prior to the commencement of aggressive interventions of the CBN in the nation’s foreign exchange market in Feb. 2017, the naira had exchanged at a scandalous N520 to a dollar.
At the peak of dwindling oil revenue, the BDCs had partnered strategically with the CBN to ensure that proceeds of IMTSOs were used to intervene in the FOREX market.
For a sustained partnership between the BDCs and the CBN, rate harmonisation should be looked into to save the FOREX market from the jaws of currency speculators who manipulate the market with the aid of parallel market operators.
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Blue Economy: Minister Seeks Lifeline In Blue Bond Amid Budget Squeeze

Ministry of Marine and Blue Economy is seeking new funding to implement its ambitious 10-year policy, with officials acknowledging that public funding is insufficient for the scale of transformation envisioned.
Adegboyega Oyetola, said finance is the “lever that will attract long-term and progressive capital critical” and determine whether the ministry’s goals take off.
“Resources we currently receive from the national budget are grossly inadequate compared to the enormous responsibility before the ministry and sector,” he warned.
He described public funding not as charity but as “seed capital” that would unlock private investment adding that without it, Nigeria risks falling behind its neighbours while billions of naira continue to leak abroad through freight payments on foreign vessels.
He said “We have N24.6 trillion in pension assets, with 5 percent set aside for sustainability, including blue and green bonds,” he told stakeholders. “Each time green bonds have been issued, they have been oversubscribed. The money is there. The question is, how do you then get this money?”
The NGX reckons that once incorporated into the national budget, the Debt Management Office could issue the bonds, attracting both domestic pension funds and international investors.
Yet even as officials push for creative financing, Oloruntola stressed that the first step remains legislative.
“Even the most innovative financial tools and private investments require a solid public funding base to thrive.
It would be noted that with government funding inadequate, the ministry and capital market operators see bonds as alternative financing.
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