The President of the Association of Bureau De Change operators of Nigeria (ABCON), Aminu Gwadabe, has reaffirmed the commitment of BDC operators to protect the Naira against speculators. Speaking to the News Agency of Nigeria (NAN) in Abuja, Gwadabe outlined strategic measures being implemented by ABCON to address concerns within the forex market.
ABCON, as a self-regulatory body, has taken proactive steps to rein in excesses among BDC operators. Gwadabe highlighted the establishment of state chapters aimed at creating a comprehensive database of forex market participants, facilitating registration processes in accordance with Financial Action Task Force (FATF) guidelines. He stressed the importance of harmonization and centralization within the forex market, advocating for stringent Know Your Customer (KYC) protocols to enhance transparency and accountability.
Of particular concern to Gwadabe is the recent depreciation of the Naira, which he attributes in part to the proliferation of peer-to-peer (P2P) platforms such as Binance. These platforms enable speculators to leverage dollar-based stablecoins, exacerbating volatility in the currency market. Gwadabe urged regulatory intervention to curb the influence of these platforms, citing their detrimental impact on the stability of the Naira.
While acknowledging the efforts of the Central Bank of Nigeria (CBN) and security agencies in addressing these challenges, Gwadabe underscored the need for concerted action to combat illegal economic activities. He lamented the lack of patriotism among those behind P2P platforms, emphasizing the urgency of restoring confidence in the forex market.
Concerns were raised regarding the significant outflow of dollars from the system to fund transactions on these platforms, exacerbating pressure on the Naira. Gwadabe called for collaboration between regulatory authorities and market participants to mitigate these challenges and restore stability to the forex market.
As the battle to safeguard the Naira intensifies, ABCON remains steadfast in its commitment to upholding the integrity of Nigeria’s currency and promoting financial stability in the face of evolving market dynamics.
Credit: News Agency of Nigeria (NAN) Text Excluding Headline