ABCON sets N250/$ exchange rate agenda for Buhari
Cautions govt on borrowing, implementation of proceeds
The Association of Bureaux de Change Operators of Nigeria (ABCON) has set N250 to dollar exchange rate agenda for President Muhammadu Buhari in his second term in office.
ABCON President, Dr. Aminu Gwadabe, who disclosed this to financial journalists in Lagos, at the weekend, said achieving a lower exchange rate for the economy will benefit the common man and lift businesses.
The naira exchanges at N362 to dollar at the parallel market and N358 to dollar at the Bureaux De Change (BDC) while the local currency exchanges at N306 to dollar at the official rate.
Meanwhile, the group has advised the Federal Government to be more cautious at borrowing, ensuring that borrowed funds are channeled to projects that will be able to repay the loans.
They rather urged government to equally look at the tax system, and block all revenue leakages to generate more funding for the economy.
Gwadabe, who spoke for the group, noted that there is need for fiscal restructuring by ensuring that states become more efficient in revenue generation and less dependent on federal allocations.
“Government should focus on things that create jobs especially through small and medium enterprises by creating opportunities for them to have easy access to funds,” he said.
Speaking on the need for lower exchange rate, he said it will improve the transaction volume for BDCs by enabling operators to buy and sell more dollars from their available cashflow.
Also, a lower exchange rate against the greenback, he said, will stabilize the local currency, raise investors’ confidence, improve Diaspora remittance flow and entrench fiscal discipline.
Continuing, he said a stronger Naira will raise Internally Generated Revenue, help in the implementation of the restriction of foreign exchange access to 42 items that can produced locally and improve BDCs capabilities to thrive.
Gwadabe therefore, advised the Federal Government to constitute new economic management team and review its performance in the last four years, adding that such review will give room for better performance in the second term of this administration which commences in May 29, 2019.
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