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News - North Central - FCT Updated: April 27, 2024

BDC operators issue warning against Naira speculation, hoarding

By Philip Adeboye
April 27, 2024
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The Association of Bureau De Change Operators of Nigeria, ABCON, issued a stern warning to those engaging in the speculative and hoarding activities of the Naira, labeling them as economic saboteurs. 

Aminu Gwadabe, the president of ABCON, emphasized in a statement released on Friday the necessity for these individuals to cease their actions.

Furthermore, Gwadabe highlighted the association's commitment to establishing a consolidated retail-end forex market aimed at addressing market volatility and enhancing regulatory compliance among its members. 

He outlined a strategic plan focused on unifying operators across various segments of the market, which includes the formation of state chapters for efficient market coordination.

The goal behind this initiative is to ensure the integration and management of a cohesive market structure within the Bureau De Change sub-sector. 

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Gwadabe also underscored ABCON's intention to enhance technological capabilities as part of its efforts to support the Central Bank of Nigeria's reforms and combat any attempts to undermine them.

“The new blueprint for a united retail end forex market structure would ensure the deployment of a centralised, democratised and liberalised online real-time trading platform.

“Finally, we also condemned in its entirety the seemingly reappearance of illegal economic behaviours in forex conversion and P2P trading that pose another recent surprises in naira volatility.

“I, therefore, want to warn that while surprises are the new normal, resilience is also the new skill,” he said.

The ABCON boss said that he was confident that the apex bank and relevant security agencies were adopting all measures to deal with any saboteurs and retain successes recorded on naira appreciation.

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“It is, therefore, in our own interest to desist from hoarding and speculation as it is a burble and will burst in no distance time,” he added.

Gwadabe said that ABCON would extend its automation policies and platforms to all BDC operators across Nigeria markets and upgrade its business process platform (formerly called SAAZ Master).

Gwadabe said that the association would sustain its engagement with regulatory agencies, security operatives and other government apparatus to entrench a secured and thriving forex market that is supportive of regulation and government.

“Part of our vision for a united retail-end forex market include activating geo mapping and automated BDCs physical office verification exercise using the Remote Gravity Physical verification apps.

“This will enable forex buyers to easily locate where BDCs offices are for effective and seamless transactions,” he said.

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He reiterated the benefits of a realistic and vibrant retail end forex market as supporting Central Bank of Nigeria (CBN’s) goal of achieving true price discovery for the naira, balancing of international obligations and national objectives.

He listed other benefits to include ensuring ease of regulation, security agencies monitoring and supervision as well as entrenching market visibility for BDC players.

According to Gwadabe, the vision for a united retail-end forex market will help in the provision of market intelligence reports, enhance the local and global image of the BDCs and other stakeholders, market operators and boost employment generation.

The successful execution of this plan, Mr Gwadabe said, would help in seamlessly capturing revenues for the government through a digitised retail-end market.

He explained that it would also create a well-structured, transparent, and competitive platform to combat the menace of unlicensed platforms like Binance, Aboki FX, and ByBit, among others.

He said that ABCON is a self-regulatory body, an umbrella body for all the Central Bank of Nigeria-licensed BDCs.

“It is a national body, acknowledged by the federal government and believes that money laundering through the BDCs or any other

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