The Depreciation of Naira Against Dollar – Insights From BDC Operators

According to the Association of Bureau De Change Operators of Nigeria (ABCON), the recent decline of the Naira against the Dollar in the foreign exchange market is attributed to peer-to-peer cryptocurrency platforms, such as Binance.

Aminu Gwadabe, the National President of ABCON, shared these observations during an interview with NAN on Wednesday.

He emphasized that the Naira’s depreciation will persist as long as platforms like Binance remain profitable.

Expressing concern, Gwadabe highlighted the impact of the recent Naira depreciation on BDC operators.

“I am pleased that both authorities and BDC operators have recognized the influence of peer-to-peer (P2P) platforms,” he stated.

These platforms, like Binance, enable speculators to utilize the Dollar to acquire USDT, a stablecoin pegged one-to-one with the Dollar.

“As long as platforms such as Binance continue to thrive, the Naira’s depreciation will continue,” he added.

Despite the Central Bank of Nigeria providing an additional $10,000 to eligible BDC operators on Tuesday, the Naira still experienced a decline against the Dollar in the foreign exchange market.

Furthermore, the Economic and Financial Crimes Commission (EFCC) resumed its efforts to combat currency manipulation by targeting Binance and other cryptocurrency platforms to safeguard the Naira’s stability in the FX market.

Notably, the EFCC has filed charges against Binance and two of its executives in an Abuja High Court on allegations of fraud and currency manipulation.