The Association of Bureau De Change Operators of Nigeria (ABCON) has moved to end the volatility of the forex market as it has commenced the enforcement of compliance to extant rules and regulations of both regulatory and security agencies.
Some of these rules and regulations are geared towards eliminating speculation and hoarding in the foreign exchange market.
READ: Why the naira is now gaining against the dollar
This is also as the association and the Central Bank of Nigeria (CBN) have concluded plans to increase the volume of dollars allocated to Bureau De Change Operators (BDCs) as well as the frequency of allocation.
This disclosure was made by the President of ABCON, Aminu Gwadabe, during a chat with Nairametrics on Friday, June 18, 2021.
What the President of ABCON is saying about compliance
Gwadabe said that the association is deeply worried about the volatility and sharp decline of the naira and has, therefore, set up intelligence and compliance committees in major locations to ensure compliance to its resolutions.
Gwadabe said, “Our Association, ABCON, being the major stakeholder and our members’ strategic potent tools in the retail foreign exchange market felt deeply worried with the volatility and sharp decline of our local currency and therefore resolved to ensure the compliance of our members nationwide to extant rules and regulations of our both regulatory and security agencies with a view to halt the menace.
READ: ABCON confirms arrest of some members over money laundering, terrorism financing charges
In order to achieve that, Intelligence and compliance committees were constituted in our major locations in Lagos, Kano, Abuja, Port Harcourt and Onitsha to ensure the success of our resolutions. In addition, we are also continuing with our fruitful collaboration with our apex regulator, the CBN, and at our meeting on the way forward where the discussions for the review of our volumes of allocation and frequency of allocation were considered to scale up soon.
‘’So, we advise and warn our members in particular and the public to desist from any behaviour of speculation and hoarding as the action will definitely lead to a very big collateral loss. Most importantly, we are presently training over 5000 of our members nationwide to expose them to Anti-money laundering and Anti-terrorism measures to avoid the bulls and the hot monies in circulation taking advantage of their vulnerabilities.’’
READ: Forex speculators to lose N100 billion as CBN sustains massive funding for BDCs
Gwadabe said that ABCON will continue to ensure effective and actionable collaboration and measures as part of its corporate social responsibility adding that their action so far have started yielding very positive result in the significant gains recorded in the value of our local currency, yesterday.
The naira appreciated from about N500/$1 to an average of N485/$1.