EFCC Agrees with BDCs to Spoil Black Market Rate as One Dollar Sells for over N1,400

EFCC Agrees with BDCs to Spoil Black Market Rate as One Dollar Sells for over N1,400

  • EFCC and the ABCON have decided to team up to ease pressure on the naira at the unofficial foreign exchange market
  • One of the ways the two bodies plan to do this is through regulatory reforms, transparency, and compliance
  • Latest data shows the naira at the unofficial market exchange against the dollar at N1,410 per dollar on Thursday, November 25, 2024

The Association of Bureaux De Change Operators of Nigeria (ABCON and the Economic and Financial Crimes Commission (EFCC) have agreed to crash the dollar rate at the black market.

The decision was reached after a meeting at the EFCC headquarters in Abuja, attended by EFCC Chairman Ola Olukayode and the ABCON National Executive Council (NEC) led by its President, Aminu Gwadabe.

Black market rate
ABCON gets the go-ahead to display the black market rate Photo credit: nurphoto
Source: Getty Images

During the meeting approval for ABCON to establish a common website for Bureaux de Change (BDCs) rate and trading platform was reached.

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ABCON moves to crash the dollar

Explaining the platform Gwadabe said it will serve as a challenger to other platforms in the economy and ensure uniform rate reporting.

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In 2021, the Central Bank of Nigeria suspended an online platform established by the BDCs to publish their rates and another platform that displayed parallel market rates.

The operators were accused of manipulating the rates.

ABCON president in a telephone chat with Legit.ng noted that the new website will be better and more refined.

His words:

"The bureaux will now be upscaling the old website to serve as a challenger to other platforms in the economy”

ABCON expresses readiness

He further reiterated CBN-licenced BDCs' readiness for regulatory reforms that would reposition the operators for enhanced efficiency, transparency and compliance with set regulations in the interest of the financial system and economy.

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He promised that BDCs will continue to discourage forex end-users from patronising the unofficial or black market segment of the forex market to achieve exchange rate stability and convergence.

ABCON finally exposes the reasons behind the naira depreciation

Legit.ng reported that Bureau de Change operators have raised the alarm that some Nigerians are hoarding their savings in USD due to the depreciation in the value of the naira.

The National President of the Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe, said that there was a need for the FX market to be liquid.

The ABCON boss noted that the $2.2 billion released by Afrexim Bank was insufficient to stimulate the market and significantly impact naira’s value.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

Aminu Gwadabe avatar

Aminu Gwadabe (President at Association of Bureaux de Change Operators of Nigeria) Alhaji Aminu Gwadabe is the president of the Association of Bureau De Change Operators of Nigeria (ABCON) that represents the interests of licensed Bureau de Change operators in Nigeria. Gwadabe comments on issues relating to the foreign exchange market, currency exchange rates, and economic policies in Nigeria over the years.

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