The Association of Bureaux De Change Operators of Nigeria (ABCON) has urged the Nigerian government to ban the operations of Binance in the country, citing it as a major factor contributing to pressure on the naira’s value.
ABCON President, Alhaji Aminu Gwadebe, made this call during an interview in Lagos, stressing that Binance’s trading activities have been affecting both the Investor and Exporters window and the parallel market, making it a significant player in the forex market.
Gwadebe mentioned that Binance is the most liquid market with an impressive transaction rate of 1.2 million transactions per second, making it a dominant force in the market. He expressed concerns about the decreasing optimism in the current foreign exchange market situation, which could lead to loss of confidence and affect the naira’s stability.
Gwadebe highlighted the various factors putting pressure on the naira, including foreign exchange hoarding by banks and oil companies, speculation, and round-tripping. He expressed hope that with the removal of petrol subsidy, the Central Bank of Nigeria (CBN) would receive remittances from the Nigerian National Petroleum Corporation (NNPC), contributing to naira defense.
Gwadebe urged the National Assembly to enact legislation to protect investors in the market and emphasized the importance of liquidity for a successful exchange rate policy. He also mentioned that the recent revocation of licenses for Bureaux De Change by the CBN has caused confusion, stating that the comprehensive list of revoked licenses hasn’t been officially released.