BDCs to boost investors’ confidence, attract liquidity into FX market

In a bid to reposition the Nigerian foreign exchange market and attract needed liquidity into the market, Bureaux De Change Operators (BDCs) in the country said they are determined to boost foreign investors’ confidence by upholding ethics and professionalism of the job.

They believed with this commitment, persisting hard currency scarcity and continual pressure on the exchange rate would be reduced in no time. Speaking at the South West zonal meeting held in Lagos, President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, said that the association is committed to deepening professionalism among BDC operators in order to engender foreign investors’ confidence in against N158.07 billion at the last auction.

The federal government usually issue treasury bills to raise cash, in order to fund the budget deficit, manage banking system liquidity and curb rising inflation.

Meanwhile, Gross Domestic Product (GDP) shrank 2.24 percent yearon-year in the third quarter of 2016, following a 2.06 percent decline in the previous period, against the market expectations of a 2.58 percent.

Lower oil prices continued to hurt the oil sector which slumped for the fourth straight quarter while the non-oil sector was flat after shrinking in the previous two periods. Meanwhile, Finance Minister, Mrs. Kemi Adeosun on Thursday said it had directed the chief executives of 31 revenue generating agencies yet to remit N450 billion accruing to come up with a repayment plan.

She said already, a demand notice to that effect had been issued by the ministry to the affected agencies adding that a meeting with them had been scheduled for December 6. Agencies affected by the directive include the CBN, the Securities and Exchange Commission, Petroleum Technology Development Fund, and the National Agency for Food and Drug Administration and Control. the Nigerian foreign exchange market.

According to him, “You have to distinguish yourselves from parallel market. We are the ones licensed to operate the business but we must prove this by distinguishing ourselves through the way we serve our customers.” He said BDC operators could do this by rendering efficient services and complying with all regulatory requirements.

He explained that most of the pressure on the local currency is due to problems of liquidity and confidence especially on the part of foreign investors, adding that professionalism on the part of BDCs will help in strengthening the nation’s foreign exchange market.

“You know that before now, there were criticisms of BDCs but now we are the new bride of the regulators. To ensure that we sustain the renewed regulatory interest and confidence in BDCs, we have to ensure we comply with the necessary requirement and demonstrate professionalism in the way we do our business.

I can tell you that the Central Bank of Nigeria (CBN) is even willing to expand our scope of business but this is conditioned to our willingness to increase our level of professionalism.” Gwadabe advised BDCs