Forex: ABCON Bans Street Hawking, Moves To Cut Rate

The Association of Bureaux De Change Operators of Nigeria
(ABCON) says it will launch an “Operation No Street Trading” to
stop street hawking of foreign currencies.

Aminu Gwadabe, ABCON president, said this was one of the
resolutions unanimously reached by BDCs directors at the meeting of
operators on Tuesday in Lagos.

Gwadabe also said all market participants would work together to
lower the foreign currency rate.

He warned that non-compliance will not be condoned and errant
members will be sanctioned.

“All operators to collaborate in bringing down the forex rates
in the market; street trading by BDC should be discouraged/banned
and ABCON will commence operation ‘no street trading,” Gwadabe
said.

“BDCs should improve return rendition to regulatory authorities;
margin review to meet operational requirements; widening the scope
of transactions; digitalisation of BDC operations.

“ABCON to punish errand members; ABCON compliance officer and
staff to commence nationwide supervision of BDC operations.”

ABCON had urged foreign exchange users and the general public on
May 31 to patronise only BDC operators licensed by the Central Bank
of Nigeria (CBN) to get dollars at the approved rate.

Gwadabe had said forex speculators were capitalising on the
state of the forex market and the naira to sell dollars above the
CBN-approved margin.

He added the CBN-licenced BDCs were not selling dollars to
end-users above the N2 per dollar margin set by the regulator to
protect the naira against forex speculators and ensure exchange
rate stability.

Meanwhile, the naira appreciated against the US dollar at the
investors and exporters (I&E) window on Wednesday to close at
N411.06/$1; while the naira went for N498/$1 at the parallel
market.

The Association of Bureaux De Change Operators of Nigeria
(ABCON) says it will launch an “Operation No Street Trading” to
stop street hawking of foreign currencies.

Aminu Gwadabe, ABCON president, said this was one of the
resolutions unanimously reached by BDCs directors at the meeting of
operators on Tuesday in Lagos.

Gwadabe also said all market participants would work together to
lower the foreign currency rate.

He warned that non-compliance will not be condoned and errant
members will be sanctioned.

“All operators to collaborate in bringing down the forex rates
in the market; street trading by BDC should be discouraged/banned
and ABCON will commence operation ‘no street trading,” Gwadabe
said.

“BDCs should improve return rendition to regulatory authorities;
margin review to meet operational requirements; widening the scope
of transactions; digitalisation of BDC operations.

“ABCON to punish errand members; ABCON compliance officer and
staff to commence nationwide supervision of BDC operations.”

ABCON had urged foreign exchange users and the general public on
May 31 to patronise only BDC operators licensed by the Central Bank
of Nigeria (CBN) to get dollars at the approved rate.

Gwadabe had said forex speculators were capitalising on the
state of the forex market and the naira to sell dollars above the
CBN-approved margin.

He added the CBN-licenced BDCs were not selling dollars to
end-users above the N2 per dollar margin set by the regulator to
protect the naira against forex speculators and ensure exchange
rate stability.

Meanwhile, the naira appreciated against the US dollar at the
investors and exporters (I&E) window on Wednesday to close at
N411.06/$1; while the naira went for N498/$1 at the parallel
market.