Bureau De Change Operators in Nigeria to Implement Automation to Combat Street Trading

The Association of Bureau De’Change Operators of Nigeria (ABCON) has unveiled plans to introduce automation into its trading operations to combat the activities of market speculators and street traders.

This initiative comes as the association expresses support for the recent crackdown by the government on individuals involved in the street trading of foreign currencies.

Since the beginning of the year, Nigeria’s local currency has experienced significant depreciation, reaching N1,900 against the US dollar on Wednesday due to factors such as low liquidity and increased demand for foreign currency.

In an interview with our correspondent on Wednesday, the President of ABCON, Aminu Gwadabe, revealed that the association has developed an automation platform that, once approved by the Central Bank of Nigeria (CBN), will revolutionize the retail foreign exchange (FX) market.

Gwadabe explained that the automation process is set to be launched within three weeks, pending “no objection” approval from the CBN.

“We have now put forward several recommendations on how we can leverage technology, innovation, and automation in our operations,” Gwadabe said. “In three weeks, we will implement automation. We have already built the automation system; it’s ready for use. We have submitted it for approval, and we are awaiting the CBN’s ‘no objection’ approval. This innovation will also eradicate street trading.”

He emphasized that the ongoing raids and arrests are not targeted at licensed Bureau De’Change operators but rather at those involved in street trading, which disrupts the operations of licensed operators.

Gwadabe urged members of the association to adhere strictly to all FX regulations and conduct their operations within their designated offices.

Regarding the volatility in the FX market, Gwadabe attributed it to various factors, including supply-demand imbalances and liquidity issues.

On Wednesday, the naira further depreciated to N1,900 against the dollar in the parallel market. BDC operators quoted buying rates at N1,850 and selling rates at N1,900, with a profit margin of N50.