Emmanuel OchayiIn an effort to lower volatility and improve regulatory compliance, the Association of Bureaux De Change Operators of Nigeria (ABCON) has revealed plans to establish a single retail end of the foreign exchange (FX) market.
FX Market: BDC Operators Unveils Plan For Unified Retail Market To Tackle VolatilityThe move would bring together operators from all market segments, including the launch of state chapters for improved coordination and integration, according to ABCON President Aminu Gwadabe.
Gwadabe stated, “Our vision for a united retail-end forex market includes activating geo-mapping and automated BDCs physical office verification exercise using the Remote Gravity Physical verification apps. This will enable forex buyers to easily locate BDCs offices for effective and seamless transactions.”
READ ALSO: Naira Appreciates To N856/$1 In Official Window As Afreximbank Injects $2.25bn Into FX Market
The initiative is to generate employment, improve the local and international reputation of BDCs, and supply market intelligence reports. It also involves modernising the Business Process Platform (formerly SAAZ Master).
If this plan is implemented successfully, it will also enable the government collect money from a digitalized retail end market and provide a competitive, transparent, and well-organized platform to counter the threat of unlicensed platforms.
Gwadabe emphasized, “With the world going digital, BDC operators under the ABCON leadership are committed to staying ahead of the competition by deploying time-tested technology to deliver effective services to foreign exchange end-users.”
He also warned members against illegal economic behaviors in forex conversion and peer-to-peer trading, stating, “I can confidently say the apex bank and relevant security agencies are on their oars to ensure the feat of naira appreciation continues and will deal with any saboteurs. It is, therefore, in our interest to desist from hoarding and speculation, as it is a bubble and will burst in no distance time.”
This news follows ABCON’s endorsement of the Central Bank of Nigeria’s order prohibiting the use of domiciliary accounts as security for naira loans, which was issued several weeks prior.
The action is anticipated to serve the CBN’s objective of attaining genuine price discovery for the naira, balancing international commitments and domestic goals, and fostering a thriving retail end FX market.
