Nigeria ABCON Official Blames CBN Forex Allocation for Naira's Decline

ABCON official highlights inadequate CBN forex allocation as the main driver of Naira depreciation, refuting claims of BDC involvement. Learn about the challenges faced by operators and the broader economic implications of the currency's decline.

A senior official from the Association of Bureau De Change Operators (ABCON) has attributed the recent depreciation of the Naira to insufficient dollar allocations from the Central Bank of Nigeria (CBN), rather than actions by BDC operators.

According to the official, who chose to remain anonymous, the Naira plummeted to a new low of N1520.4, reflecting market volatility with a staggering 41% drop in daily turnover. This decline signals tightening liquidity in the foreign exchange market, exacerbating concerns about the Naira's stability.

The ABCON official refuted claims that BDC operators are solely responsible for currency fluctuations, emphasizing the role of inadequate dollar allocations from the CBN. Furthermore, the official criticized the lack of focus on the Autonomous Foreign Exchange Market (AFEM) window, suggesting that better management could help stabilize the market.

Despite efforts to attribute the depreciation to BDC activities, the official shed light on systemic liquidity challenges and policy timing issues, highlighting the complexities influencing the Naira's depreciation.