Forex: Ban on vehicle importation will reduce pressure at parallel market – Gwadabe

The Association of Bureau De Change Operators of Nigeria has said that the proposed ban on vehicles through land borders will reduce forex pressure at the parallel market.
The President of ABCON, Alhaji Aminu Gwadabe, made the observation in an interview with the News Agency of Nigeria in Lagos on Tuesday.
The Federal Government had on December 2 issued a circular banning the importation of new and used vehicles through land borders from January 1, 2017.
According to Gwadabe, the restriction, in addition to the removal of administrative feat on 41 items, will also reduce reliance of neighbouring countries’ demand for dollars on Nigeria’s economy.
He said that if well put in place, the measures would engender sustained appreciation of Naira at the parallel market.
Gwadabe said: “The removal of administrative feat on 41 items and the restriction of used vehicles on our porous land borders will reduce pressure in the parallel market.
“It will also reduce reliance of neighbouring countries’ demand for dollars on our economy.”
The ABCON president noted that Naira had remained stable at the parallel market, exchanging at N485 to a dollar, in spite of the end of the year rush for it.
Gwadabe said that the stability was largely due to the CBN’s ability to ensure that all licensed BDCs had access to the proceeds of International Money Transfer Operators for the past two weeks.
He said that ABCON was directly in charge of disbursement of the proceeds of IMTSOs outside Lagos to ensure adequate liquidity in those markets.
He said: “Presently, over 2,500 BDCs access 8,000 dollars each weekly.”
The ABCON president said that the association had consistently engaged BDCs to ensure professional conduct or face sanctions for infractions.
He said that the automation of BDC operations by ABCON was part of its strategies to ensure transparency and effective monitoring as well as engender investors’ confidence in the forex market.
Gwadabe said that many newly licensed IMTSOs were set to inflow their proceeds as part of efforts to boost liquidity in the forex market.