ABCON backs CBN on prohibition of non-oil export dom account collateral
The Association of Bureaux de Change Operators of Nigeria, ABCON, has urged the Central Bank of Nigeria, CBN, not to allow non-oil exporters to hold foreign currencies in their domiciliary accounts for more than 48 hours.
ABCON President, Dr. Aminu Gwadabe in a statement yesterday, expressed support to the CBN directive stopping the use of non-oil export domiciliary accounts deposits for naira loans, while also calling for the separation of the ownership and operating structure of FMDQ.
According to him, the stoppage would not only add to dollar liquidity in the market but also help in the accretion of our buffers.
“We are bewildered that some companies and manufacturers with huge billions of dollars balances in their non-oil export Dom account source their Fx needs in the official window and use same for naira loans.
“We therefore advise for the review of the guidelines on holding currencies on non-oil export accounts to a maximum of 48 hours, to borrow from the South African policy on the operations of non-oil exports Dom account proceeds
.
“CBN should also not make applicants of huge billions of dollars holding on their non-export oil proceeds Dom accounts eligible for FX request at both the NAFEM and NAFEX window.
“In the same vein we urge CBN to upgrade its policies and circulars to legislation regarding the impending BDCs new reforms to give comfort and guarantees to would be investors in the transformation of the BDC industry’s sub sector and allowing only the existing stakeholders the grants father’s right for merger and acquisition to meet the expected reviewed financial requirements as suggested by ABCON.
“We also want to pledge our continuing support to the CBN’s proactive and effective policies to address our volatility headwinds,” Gwadabe said.
