ABCON Blames Naira Depreciation On Illegal BDC Operators, Says Association Unhappy With Forex Crisis

The Association of Bureau de Change Operators (ABCON) of Nigeria has said that it is not responsible for the crash of the naira at the Bureau de Change segment of the foreign exchange market.

The president of the association, Aminu Gwadabe, made the disclosure in response to THE WHISTLER enquiry on the developments in the Nigerian foreign exchange market.

The naira has been on a free fall as it depreciated to N1,170 per dollar on Friday, from the N1,155 it traded the previous day.

Between May 29, 2023 to October, the naira has lost N390 from N780 to N1,170 per dollar.

Gwadabe said, “The continuous depreciation of the naira in both official and parallel markets does not benefit the BDCs and the domestic economy and steps should be taken to reverse the trend and strengthen the local currency for maximum impact.

“The ABCON is not happy with the unlicensed forex dealers who are at the centre of speculative activities, and attracting negative image to the sub-sector.”

According to him, the illiquidity in the market remains a major concern to the BDC segment of the market.

Gwadebe said, “ABCON can only continue to educate the general public against patronizing the illegal forex dealers because the suspension of the Self-Regulatory Organization status of ABCON makes it difficult for the group to directly sanction the illegal operators.

“Enforcement of regulatory sanctions against non-compliance with guidelines are expected to be prompt and stiff against erring members as a deterrent to others.”