The Association of Bureaux De Change Operators of Nigeria (ABCON) has unveiled initiatives aimed at creating a unified retail segment within the foreign currency market. According to a statement released by the association on Friday, this move is intended to address market volatility and enhance regulatory adherence within that sector.
ABCON President, Aminu Gwadabe, outlined the organization’s plans, which include unifying operators across various segments of the market. This involves establishing state chapters to coordinate, integrate, and oversee a cohesive market structure.
Gwadabe emphasized that the initiative aims to encompass all BDC operators across Nigeria’s markets. Additionally, there are plans to enhance the Business Process Platform, formerly known as SAAZ Master.
He stated, “Part of our vision for a unified retail forex market involves implementing geo-mapping and automated verification exercises for BDCs’ physical offices using the Remote Gravity Physical Verification apps. This will facilitate easy access for forex buyers to locate BDC offices for efficient transactions.”
He reiterated the benefits of a robust retail forex market in supporting the Central Bank of Nigeria’s objectives, such as achieving true price discovery for the naira, balancing international obligations and national objectives, ensuring regulatory ease, and enhancing visibility for BDC players.
Gwadabe highlighted that the vision for a unified retail forex market would facilitate the provision of market intelligence reports, elevate the local and global reputation of BDCs, stakeholders, and market operators, and stimulate employment opportunities.
He emphasized that the successful implementation of this initiative would streamline government revenue collection through a digitized retail market and establish a well-organized, transparent, and competitive platform to counteract unlicensed activities.
“Given the digital evolution, BDC operators under ABCON’s leadership are dedicated to leveraging proven technology to deliver efficient services to forex end-users,” Gwadabe stated.
Furthermore, he denounced the resurgence of illicit economic practices in forex conversion and peer-to-peer trading, which have contributed to recent naira volatility. He cautioned members against hoarding and speculation, emphasizing the importance of resilience in navigating uncertainties.
Addressing his members, the ABCON president asserted, “I can assure you that the central bank and relevant security agencies are vigilant to sustain naira appreciation and will crack down on any sabotage. Therefore, it’s imperative to refrain from hoarding and speculation, as it’s unsustainable and will lead to adverse consequences.”
These remarks come shortly after the association voiced its endorsement of the CBN directive prohibiting the use of domiciliary accounts as collateral for naira loans.
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