The Association of Bureaux De Change Operators of Nigeria (ABCON) has said that exchange rate unification is necessary to maximise the benefits of increased remittances inflow into the economy. Commending the recent policy measures introduced by the Central Bank of Nigeria (CBN) to improve inflow of remit-tances, ABCON, however, noted that “the fundamental problem is not the payment of foreign currency to beneficiaries but a fallout of multiple exchange rates in Nigeria’s foreign exchange market.”
The association stated this in its quarterly economic review for the fourth quarter of last year (Q4’20), stressing that without the unification of the multiple exchange rates across the forex market, the increased inflow of remittances may be vulnerable to capital flight and hence make limited impact on the economy.
ABCON stated: “A survey carried out by ABCON quarterly revealed that a large percentage of beneficiaries require naira for domestic commitments in Nigeria. Upon collection of foreign currency cash or drawing from their domiciliary accounts as the policy provided, they do the conversion usually unofficially where the exchange rates are higher.
“Though the authorities are able to capture figures of the inflows from the data of the International Money Transfer Operators (IMTOs) for statistical purposes, utilisation of the foreign exchange may still flow into the unofficial/ informal sector for capital flight and other uses not marginally expedient for the growth of the forex market.