Bureaux De Change (BDC operators) have called on the Central Bank of Nigeria (CBN) to consider raising the liquidity ratio of banks, to discourage foreign currency holding.
The Association of Bureaux De Change Operators of Nigeria (ABCON) made the demand in its Quarterly Economic Review report for the Third Quarter of the year (Q3’2020).
Techeconomy.ng gathered that the association also warned CBN against pegging interest rates and other variables, saying it could lead to a faulty system.
Part of the report read: “It is imperative for the monetary authority to actively participate with precision through market level interventions.
“Volumetric interventions and demand push exchange rates must automatically influence the market in the direction the authority desires.
“It is illogical to intervene in the market at N380 when the open market is moving at N460. Who takes the margin? This is an exchange rate mismatch.
“The solution to the problem is not throwing millstones or blackmailing any sub-sector of the market, the margin ends in one market, and is functional to the volume to satisfy market deficit in supply.
“Operators are set to make windfalls as foreign currency arrears coming from the long business lockdown are reopening.
“Traders, through cooperation, can attract huge autonomous foreign exchange volume through interplay of fine exchange rate margins from the liquidity in the open market.”
Speaking against the recent decision of the federal government to increase the retirement age of teachers from 60 to 65 years, the organization said it would work against the policies put in place to reduce youth unemployment in the country.
The ABCON, however, called on the government to put in place post-retirement facilities instead of increasing retirement age and direct spending towards business recovery.