Bureau de Change (BDC) operators are strategizing to implement automation to address issues such as
The Association of Bureau De’Change Operators of Nigeria is set to automate its trading operations in a bid to eliminate market speculators and curb street trading in foreign currencies. The association supports the recent government crackdown on street forex trading. With Nigeria's local currency facing severe depreciation since the start of the year, the President of ABCON, Aminu Gwadabe, revealed plans for an automation platform that, once approved by the Central Bank of Nigeria, could revolutionize the retail forex market.
He mentioned that the automation process is scheduled for launch in three weeks, contingent on receiving a "no objection" approval from the Central Bank of Nigeria (CBN). Gwadabe stated, "We have put forth several recommendations on how we can leverage technology, innovation, and automation in our operations. In three weeks, we plan to implement the automated system. We already have the automation system in place, awaiting the CBN's approval of 'No Objection'; that is all we are asking for."
"We can fully automate the activities of any retail trader; we will automate them within three weeks. The automation platform has already been developed and is ready for implementation. We have submitted it to the authorities, and we are just waiting for the 'no objection' approval. This innovation will also eradicate street trading."
Gwadabe further emphasized that the current crackdown on street trading should not be misunderstood. He revealed that FX street traders disrupt the customers of licensed operators, causing disruptions in their legitimate operations.
He further stated, "The ongoing actions are not directed at licensed Bureau De'Change operators but at those involved in FX street trading. We, as an association, are against street trading and support any measures to eradicate FX street traders. Their activities also impact us; I have an office, but clients face challenges reaching it due to the presence of street traders."
Regarding FX market volatility, Gwadabe attributed it to factors such as supply-demand imbalances and liquidity issues. He urged association members to strictly adhere to FX regulations and carry out their operations within their designated offices.
On Wednesday, the naira experienced further depreciation, reaching N1,900 against the dollar in the parallel market.
As reported by currency operators, the naira exchange rate experienced a 9.83% decline from the week's initial N1,730 and a 9.82% drop of N170 compared to Tuesday's trading rate.
Bureau de Change operators are currently grappling with liquidity challenges to address the increasing demand for the U.S. dollar.
On Wednesday, BDC operators set the buying rate at N1,850 and the selling rate at N1,900, resulting in a profit margin of N50.
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