BDCs Partner NIBSS To Automate Operations

Bureau de change operators under the aegis of the Association of Bureaux De Change Operators of Nigeria are collaborating with the Nigeria Inter-bank Settlement System Plc to automate their operations for online real time returns rendition.

The Acting President, ABCON, Alhaji Aminu Gwadabe, made the disclosure in Lagos, a statement by the association indicated.

Gwadabe also said that ABCON had established the naijabdcs.com, a live rate engine room to be rolled out soon, as part of its strategy to enhance transparency, price discovery and attracting of billions of dollars through Diaspora remittances.

According to him, the association is working with the Central Bank of Nigeria to maintain naira stability.

The ABCON chief noted that foreign investors, who invested billions of dollars in the equities market, might exit the market ahead of the 2019 elections.

As a result, he said the negative implication of exit of portfolio investors from the local bourse raised major concern on naira’s continued stability.

According to him, there will be further external sector imbalances in the run-up to the 2019 elections even as equity market imbalance is likely to increase.

The statement quoted Gwadabe as saying, “The development in the stock market and its closeness to elections is worrisome. It raises a lot of concerns on the relatively stable foreign exchange market. The investors in the stock market are largely portfolio investors from international markets and will at any given time decide to dump their holdings and take huge dollar from the economy as they repatriate both capital and their profits to other lucrative destinations.”

He described the portfolio investors as capitalists driven solely by profits.

Gwadabe explained, “The build up to 2019 election campaign and politicking is also an albatross to the naira’s continuous sovereignty. Besides, the inaction of regulators and policymakers to address the multiple exchange rates will continue to endanger the achieved stability in the foreign exchange market.”