ABCON warns FG on France’s involvement in ECO currency

The Association of Bureaux De Change Operators of Nigeria (ABCON) has urged the Nigerian government to be cautious of France’s involvement in the Eco currency development.

In a statement released by ABCON, the President, Aminu Gwadabe made his worries about the ‘Eco’ currency project known. He advised that before Nigeria takes part in the project, France’s role should be critically examined

According to Gwadabe, the decision of the francophone countries to change the name of their common currency to Eco is worrisome and should be seen as an attempt by France to continue its control of the Francophone West Africa country’s economies.

“Nigeria must not adopt the currency with France or Euro as the background promoters to avoid enslaving West Africa economically. If the prime objective to facilitate cross border trade and economic development of the member states is still to be achieved, the structure of the system must be built on fundamentals in the sub-region to compete with other economic blocks.

 “Government is encouraged to pursue the project with sincerity of purpose based on sound policies devoid of interference from any economic block. The Central Bank of the sub-region should be independent to invest the reserves in any world currency to satisfy the interest of constituent states,” the ABCON President warned.

What you should know: When the single currency policy finally takes effect, all the West African countries will be able to use a common currency. This implies that contrary to what we have now whereby different countries in West Africa use different currencies, there will only be a currency to be used across the sixteen countries in West Africa. The perfect example is the introduction of the Euro, which is the official legal tender across the European Union.

On the BDC Business, Gwadabe called on the Central Bank of Nigeria (CBN) to address the uncertainties threatening how profitable the business should be.

Gwadabe said, “Monetary authority determines the BDC firm’s buying rate, but unconcerned with open end of selling rate even though there is a cap. They should be free to determine what to buy and sell like in any market structure. 

 “Very clearly, the BDC firm’s selling rate is still largely determined by the parallel market rates which are higher in liquidity without any restraint from the authorities to curtail their activities.

 “The firm is still largely exposed to several operations and systemic risks which require the appropriate articulation and design of structural adjustments to place the BDC firm on the right part during the new decade.”

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