Forex Scandal: BDCs Push To Begin Public Display Of Black-Market Rates

After AbokiFX was prohibited from broadcasting online parallel market exchange rates for more than two years, there are now attempts to allow the Association of Bureau De Change Operators of Nigeria (ABCON) to show the naira’s black market rates against the dollar on websites.

Speaking to THE MATRIX, ABCON President Aminu Gwadabe stated that the organization was recommending to authorities that BDCs be permitted to resume displaying currency rates in the public eye.

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He said that in order to compete with other platforms in the market, ABCON is improving the functionality of their current website as part of the proposal.

This move is expected to be another in a long line of departures from the measures implemented by the former central bank leadership, which sought to stringently regulate BDC operations and reduce the prominence of the unofficial market.

As of January 22, 2024, the Naira was trading at an all-time low of N1360/$ in the parallel market, and about N1371/$ in the P2P market, representing a 47% discrepancy from the N925.34/$ trading in the official market.

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Despite efforts from this administration and the CBN leadership to revolutionize the exchange rate regime, their efforts have been met with difficulty as the Naira remains under pressure due to inadequate liquidity.

In September 2023, the Minister of Finance, Wale Edun noted that there was a $6.8 Billion overdue forward payment that caused the Naira to weaken severely.

However, since then, the CBN has made different tranche payments in a bid to clear the backlogs.