ABCON Moves to Unify Black Market Operations to Boost Transparency, Help Naira Recovery
The Association of Bureau De Change Operators of Nigeria (ABCON) has disclosed plans to establish a unified FX retail market
ABCON Chairman Aminu Gwadabe said the aim is to entrench transparency and help CBN discover the naira’s value.
He said the association will embark on automation and verification exercises in all states to enhance transparency and ensure compliance.
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
The Association of Bureau de Change Operators of Nigeria (ABCON) has announced plans to establish unified retail end FX market operations.
ABCON President Aminu Gwadabe recently revealed that the move would tackle market volatility and boost regulatory compliance within the BDC subsector.
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ABCON outlines steps to help the naira's recovery
The ABCON Chairman said the association is making strategic plans to unify operations from different cadres of the currency market.
He said the plan includes the inauguration of state chapters for market coordination, integration, and administering a unified market structure,
According to Gwadabe, the aim is to extend automation policies and platforms to all BDC operations across Nigerian markets and upgrade its business process platform.
He stated that the new plan for a unified retail end FX market structure would ensure the development of a centralized, democratized, and liberalized online real-term trading platform.
Gwadabe said:
“The association will sustain its engagement with regulatory agencies, security operatives, and other government apparatus to entrench a secured and thriving forex market that supports regulation and the government.”
“This will enable forex buyers to easily locate where BDCs offices are for effective and seamless transactions.”
The ABCON said a realistic and vibrant retail end forex market helps the Central Bank of Nigeria's (CBN) goal of achieving real price discovery for the naira.
ABCON's new plan is to aid regulation
Gwadabe said a realistic and vibrant retail end FX market supports the Central Bank of Nigeria’s (CBN’s) goal of achieving true price discovery for the naira.
He listed the benefits, which include balancing international obligations and national objectives.
He disclosed that the proposed FX market would ensure ease of regulation, security agencies' monitoring and supervision, and entrenching market visibility for players.
According to reports, the ABCON chair said the plan's goals would help provide market intelligence reports, boost the local and global image of the BDCs and other stakeholders and market operators, and create jobs.
ABCON president said the vision for a unified retail end forex market is to help provide market intelligence reports, enhance the local and global image of BDCs, other stakeholders, and market operators, and boost employment generation.
Naira's volatility continues
The development comes as the naira gained about N80 against the US dollar in the black market on Sunday, April 28, 2024, as against the N1,400 it traded on Friday, April 26, 2024.
The naira, however, depreciated in the official market on Friday, April 26, 2024, to trade at N1,339.29 per dollar.
The naira’s fortunes nosedived after a report emerged that the CBN was defending the naira with foreign reserves, leading to a loss of $2 billion, the highest in four years.
The apex bank has since debunked the news, stating that the story was untrue.
The Nigerian currency emerged as the world’s best-performing currency in April when it neared N1,000 to a dollar in the official and black markets.
Naira value rises in black markets
Legit.ng earlier reported that the Nigerian naira had recorded another poor performance against the US dollar in the official market.
Data from FMDQ securities showed that the naira weakened in the Nigerian Autonomous Foreign Exchange Market (NAFEM) to N1,339.23/$1 on Friday, April 26, 2024.
Friday's exchange rate signifies a loss of N2.2% or N29.35 on Friday to trade, in contrast to Thursday’s closing value of N1.309.08/$1.
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