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ABCON commends CBN on FX sale period extension

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The Association of Bureau de Change Operators of Nigeria (ABCON) has commended the Central Bank of Nigeria (CBN) for extending the Foreign Exchange (FX) sale period to its members until May 30.

ABCON President, Dr Aminu Gwadabe, told our reporter, in Lagos on Monday, that the move demonstrates the commitment of the CBN to stabilising the FX market.

According to him, it also promotes inclusiveness through the Electronic Foreign Exchange Matching System (EFEMS).

The CBN announced the extension in a circular signed by Dr W. J. Kanya, Acting Director of the Trade and Exchange Department to BDCs.

The circular, titled, “Sales of Foreign Exchange To BDCs To Meet Retail Market Demand For Eligible Invisible Transactions,” shifts the previous deadline of Jan. 31 to May 30.

It extends the temporary access granted to BDCs to the NFEM for purchasing FX from Authorised Dealers, subject to a weekly cap of 25,000 dollars.

Gwadabe, however, expressed concern that banks failed to comply with the initial notice of the apex bank in December 2024, which instructed them to sell FX to BDCs.

He urged the deposit money banks to support CBN and comply with the directive.

“ABCON and its members indeed received the news as a good development. We considered it as part of the CBN efforts at ensuring continuity and its determination for the inclusiveness of our sub-sector in the EFEM Market.

“We, however, call on all money deposit banks to partner with CBN and our members in the implementation of this circular, to ensure liquidity in the retail end sector and the Naira’s ongoing stability.

“On behalf of my members, I extend my sincere gratitude to the CBN management for their flexibility and transformative leadership.

“I assure them that we will continue to serve as a vital third-leg mechanism, committed to eliminating volatility and narrowing the gap between the parallel market and the EFEM market,” he said.

Grace Alegba

NEWSVERGE, published by The Verge Communications is an online community of international news portal and social advocates dedicated to bringing you commentaries, features, news reports from a Nigerian-African perspective. A unique organization, founded in the spirit of Article 19 of the Universal Declaration of Human Rights, comprising of ordinary people with an overriding commitment to seeking the truth and publishing it without fear or favour. The Verge Communications is fully registered with the Corporate Affairs Commission of the Federal Republic of Nigeria as a corporate organization.

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