BDC Operators Pinpoint Culprits Behind Naira Depreciation, Unveil Strategies

BDC Operators Pinpoint Culprits Behind Naira Depreciation, Unveil Strategies

Aminu Gwadabe, the President of the Association of Bureau De Change Operators of Nigeria (ABCON), has shed light on the factors contributing to the recent devaluation of the naira against major foreign currencies, particularly the US dollar. He singled out certain peer-to-peer (P2P) platforms operating within the country, where speculators utilize the dollar to purchase USDT, as responsible for the naira’s decline……READ ALSO Legal Victory: Charges Against 19 BDC Operators Struck Out By Lagos Court

Gwadabe emphasized that as long as these platforms remain lucrative, the depreciation trend of the naira is likely to persist. However, he assured that ABCON is prepared to collaborate with the Central Bank of Nigeria (CBN) and other regulatory bodies to restore stability to the currency market.

Speaking during an interview in Abuja, Gwadabe outlined ABCON’s initiatives to combat these challenges, including the establishment of state chapters to maintain a comprehensive database of forex market participants. This data repository aims to facilitate regulatory oversight and enhance transparency within the industry.

Gwadabe stressed the importance of harmonization, centralization, and Know Your Customer (KYC) protocols to monitor all players in the forex business effectively. He highlighted the need for collaboration between BDCs and regulatory authorities to verify the legitimacy of market participants and address any illicit economic activities.

Regarding the naira’s depreciation, Gwadabe attributed it to the proliferation of P2P platforms, such as Binance, where individuals leverage the dollar to acquire USDT, a stablecoin pegged to the dollar. He underscored the urgency of curbing the activities of these platforms to prevent further devaluation of the naira.

Gwadabe expressed confidence in the measures taken by the CBN and security agencies to clamp down on illegal forex transactions and ensure compliance with regulatory standards. He emphasized the detrimental impact of dollar hoarding and illicit trading schemes on the Nigerian economy, urging concerted efforts to safeguard the stability of the currency.

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