ABCON says The CBN's decision to stop selling foreign exchange to BDCs rendered the naira worthless

The decision of the Central Bank of Nigeria (CBN) to stop selling foreign exchange (FX) to its members, according to the Association of Bureaux De Change Operators of Nigeria (ABCON), has rendered the naira worthless.

This was stated by the association's national executive council in a statement released on Friday.

The CBN halted FX sales to Bureau De Change (BDC) operators eight months ago, accusing them of facilitating unlawful financial flows and money laundering in Nigeria.

Since then, the naira has continued to decline swiftly against the dollar, with the parallel market now trading at N587/$1.

The ABCON also charged the CBN with criminalizing its operations in order to explain its restrictive policy shift, advising its members to "ignore such terrible remarks."

"It is on record that the CBN's policy of prohibiting foreign exchange sales to BDCs not only increased demand but also rendered the value of our national currency meaningless," the statement states.

"It is also a reality that the majority of foreign exchange retail end-users are unable to meet their demands from so-called professional banks, making the CBN's apparent success laughable. "There is no denying that the BDCs remain the most powerful tool of the CBN's mandate of foreign exchange rate management."

Instead of a blanket removal from the market, the group urged the CBN to consider its members in whatever system of dollar supply to end-users is used in other nations.

"ABCON members are also aware that the limits imposed on BDCs haven't helped matters. The statement continues, "It only made matters worse."

"We, the board of directors, are not shirking our responsibilities to protect the viability of our members' businesses."

"As a result, we ask on all of our members to continue to reject the CBN's unwarranted labeling of us and to provide us with the essential support to maintain normalcy." Meanwhile, we'll keep working together, lobbying, running a media campaign, and engaging with stakeholders."