BDCs Introduce New Tool to Fight Market Speculators as Naira Nears N2,000/dollar
- The Association of Bureau de Change Operators said it has created an automation platform to check trading activities
- The association stated that the move is in line with the recent government's plan to stop street vendors' activities
- According to him, the automated process will begin in three weeks, provided that the CBN grants its "no objection" permission
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The Association of Bureau de Change Operators of Nigeria have completed plans to automate its trading activities to end market speculators' and street vendors' activities.
Source: Getty Images
This development follows the recent government crackdown on Bureau de Change operators buying and trading foreign money on the streets.
The Punch reported that Nigeria's currency has declined dramatically since the year began, reaching N1,900 on Wednesday, February 23, due to poor liquidity and strong demand for US dollars.
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BDCs to go digital
In an interview with Punch, ABCON President Aminu Gwadabe stated that the organisation has created an automation platform that, if approved by the Central Bank of Nigeria, may revolutionise the retail foreign exchange market.
He said the automation process will be launched in three weeks, pending a "no objection" approval from the CBN.
Gwadabe said:
“In three weeks, we will automate the system. We already have the automation system in place just for the CBN to approve “No Objection”. That is all we are asking.
“We can entirely automate the industry of any retail trader; we will automate them in three weeks; we already built the automation platform, and it is there for them.
"We sent it to them and are only waiting for ‘no objection’ approval. This innovation will also eliminate street trading.”
Additionally, Gwadabe cautioned against misinterpreting the continuing raids and trader arrests. He revealed that FX street traders attack licensed operators' clients, resulting in a pause in their business.
He added:
“What is happening is not targeted at licenced Bureau De’Change but the operators of FX street trading.
“For us, we are against street trading and support any action that will remove FX street traders. Their activities affect me also. I have an office, but my clients cannot come to my office because of the menace of street traders.”
Gwadabe explained the FX market's volatility, citing several contributing variables such as the mismatch in supply and demand and liquidity.
He asked association members to operate within their offices and to abide by all FX legislations to avoid a shutdown.
BDC operators open up on alleged shutdown
Legit.ng also reported that the ABCON addressed Abuja Bureau de Change operators' alleged shutdown of forex operations.
BDC operators in Abuja had announced the indefinite closure of their business premises on Thursday, February 1, 2024.
In a statement, Dr Aminu Gwadabe, ABCON president, said the information on the shutdown of forex operations by Abuja BDCs was incorrect and never emanated from the national body or zonal offices of the association.
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Source: Legit.ng
