The Association of Bureau De’Change Operators of Nigeria has concluded plans to automate its trading operations to eliminate the activities of market speculators and street traders.
This was as the association backed the recent clampdown by the government on persons selling and buying foreign currencies on the streets.
Since the year started, Nigeria’s local currency has depreciated severely, sliding down to N1,900 on Wednesday owing to low liquidity and surging demand for the US dollar.
The ABCON President, Aminu Gwadabe, speaking in an interview with our correspondent on Wednesday, said the association has developed an automation platform, which, if okayed by the Central Bank of Nigeria, would help revolutionise the retail FX market.
He noted that the automation process will be launched in three weeks pending a “no objection” approval from the CBN.
Gwadabe said the association has put a lot of recommendations on how we can at least utilise technology, innovation, and automation in our operations.
He also disclosed that in three weeks, the system will be automated.
Gwadabe further advised that the ongoing raids and arrests of traders should not be misconstrued, revealing that FX street traders ambush customers of licensed operators, thereby causing a lull in their operations.
On the volatility in the FX market, Gwadabe explained that various factors, including the imbalance between supply and demand and liquidity, were responsible.
He urged members of the association to strictly adhere to all FX regulations and conduct their operations within their offices.
On Wednesday, the naira depreciated further to N1,900 against the dollar in the parallel market.
According to currency operators, the naira exchange declined by 9.83 per cent from the N1,730 recorded at the beginning of the week and N170 or 9.82 per cent from the trading rate on Tuesday.
This is even as BDC operators battle for liquidity to meet the surging demands for the greenback.
On Wednesday, BDC operators quoted the buying rate at N1,850 and the selling rate at N1,900, leaving a profit margin of N50.