“It Is Not Us”: ABCON Reveals Those Behind Naira Free Fall as One Dollar Sells for N1,200
- Nigerian currency is exchanging against the US dollar at a record low across all forex markets
- It is even worse in the black market, and operators have provided reasons for the depreciation
- The Central Bank is expected to make moves in the coming days to defend the value of the naira
The Association of Bureau de Change Operators (ABCON) of Nigeria has denied involvement in the naira's sharp depreciation in the foreign exchange market.
In a statement to the association's president, Aminu Gwadabe, said unlicensed forex dealers and not its members are responsible for the speculative activities.
Source: Getty Images
He stressed that the high exchange rate does not benefit Bureau De Change operators.
The Guardian reports that the naira has been on a free fall at the black market and currency exchanged at N1,200 per dollar.
While at the official NAFEM window, the naira closed against the dollar on Friday, October 20, at N808.27.
ABCON defends its members
Speaking further, Gwadabe told Legit.ng that the association has lost its self-regulatory power, making it difficult to sanction the illegal BDC operators.
His words:
“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 unhappy with the unlicensed forex dealers who are at the centre of speculative activities and attracting negative image to the sub-sector.”
He also blamed the illiquidity in the forex market.
Gwadebe added:
“ABCON's ability to educate the public about refraining from engaging with unauthorized forex dealers is currently limited due to the suspension of its Self-Regulatory Organisation status.
"This suspension hinders the organisation's capacity to directly penalize those involved in illegal forex operations.
"We anticipate that the enforcement of regulatory sanctions for non-compliance with guidelines will be both swift and stringent when dealing with members who fail to adhere to these standards. This approach aims to serve as a strong deterrent for others in the industry."
Ben Murray begins campaign to help naira recover
In an earlier report by Legit.ng, Ben Murray-Bruce reacted to the ongoing naira depreciation.
He has also proposed solutions to the naira's depreciation and strongly believes they can be helpful.
Netizens have responded to his suggestions, primarily focusing on patronising local companies.
Source: Legit.ng
