, Dr. Aminu Gwadabe, says the bureau de change operators could help to restore stability if re-integrated into the value chain.
The crisis in the currency market worsened in the past two weeks with the dollar exchanging for over N600 at the parallel market. The dollarisation of the ongoing party primaries has heightened illiquidity. Gwadabe urged the apex bank to go back to begin to operationalise this role, calling for collaboration between the BDCs and the CBN to implement market-friendly policies that would make the former agents of stability and economic growth.
He explained that the BDCs have, since 2006, provided policymakers with a blueprint to achieving exchange rate stability and price equilibrium goals and advised the monetary authority to consider integrating BDCs into the former market to sustain their impacts.
That's what licensure does in any industry - it removes discretionary tendencies while exercising the privileges of that licence. The CBN could leverage that with the BDC. They would bring stability - pegged or floating currency.
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