ABCON Finally Exposes Reasons behind Naira Depreciation as CBN Moves against Forex Defaulters
- Currency dealers in Nigeria have revealed the reason for the naira's depreciation
- The Chairman of the Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe, said that the recent Afrexim Bank fund was not enough
- The development came after a threat by the CBN to sanction foreign exchange violators
PAY ATTENTION: The 2024 Business Leaders Awards Present Entrepreneurs that Change Nigeria for the Better. Check out their Stories!
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Bureau de Change operators have raised the alarm that some Nigerians are hoarding their savings in USD due to the depreciation in the value of the naira.
The National President of the Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe, said that there was a need for the FX market to be liquid.
Source: Getty Images
Afrexim Bank loan not enough to stimulate market
The ABCON boss noted that the $2.2 billion released by Afrexim Bank was insufficient to stimulate the market and significantly impact naira’s value.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Gwadabe said:
“For now, it’s a difficult situation that is also creating panic in the market because the value of the naira is eroding, and because of that, many people prefer to keep their savings in dollars.”
He said the Afrexim fund was a welcome development but could not stimulate the market, saying the money would be exhausted in 10 days.
Punch reports that Gwadabe requested a shift in dollar supplies into the Forex market, stating that Nigeria has seen $20 billion in diaspora remittances as of 2023.
CBN vows to prosecute Forex defaulters
He asked that the CBN review its 2020 circular, which said BDC operators should be agents of International Money Transfer Transactions so that they can separate operations and ownership.
The ABCON chairman’s statement came after the Central Bank of Nigeria said it would prosecute Forex defaulters.
The bank uncovered infractions, gross abuses, and non-compliance with foreign exchange market rules.
The Central Bank of Nigeria has uncovered infractions, gross abuses, and non-compliance with foreign exchange market regulations.
CBN vowed to punish those responsible for the abuses in partnership with relevant agencies.
CBN’s Acting Director of Communication, Sidi Ali, disclosed this in a statement in Abuja on Wednesday.
Boost for Naira as Afrexim Bank, UBA disburse $2.25 billion NNPC loan
Legit.ng reported that Afrexim Bank has disclosed the successful disbursement of the first tranche of the $3.3 billion crude oil repayment loan to the Nigerian National Petroleum Company Limited (NNPC).
The bank stated that the initial disbursement was about $2.25 billion, while the final disbursement of $1.05 billion is expected later.
The bank described the loan as a milestone, Nigeria's largest crude oil repayment facility, and one of the most significant syndicated loans raised in 2023.
PAY ATTENTION: Donate to Legit Charity on Patreon. Your support matters!
Source: Legit.ng
Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng
Aminu Gwadabe (President at Association of Bureaux de Change Operators of Nigeria) Alhaji Aminu Gwadabe is the president of the Association of Bureau De Change Operators of Nigeria (ABCON) that represents the interests of licensed Bureau de Change operators in Nigeria. Gwadabe comments on issues relating to the foreign exchange market, currency exchange rates, and economic policies in Nigeria over the years.
