The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe has expressed concerns about the ongoing depreciation of the Naira, attributing it to the profits generated by forex trading platforms such as Binance and peer-to-peer platforms.
In an interview with the News Agency of Nigeria on Wednesday, April 24th, 2024, in Abuja, Gwadabe highlighted that the sustained profits of platforms like Binance and other hidden online trading platforms pose a significant threat to the stability of the Naira.
He emphasized the urgent need to address this issue to prevent further damage to the Naira’s stability.
He said, “I am happy that the authorities, and even the BDCs as operators, have identified the peer-to-peer (P2P) platform.
“The P2P is a platform like the Binance, where speculators use the dollar to buy USDT, a stablecoin that is pegged at one to the dollar.
“As long as Binance and such other platforms continue to be profitable, the Naira will continue to depreciate.
“There are many of them in the system. Binance has been nipped in the bud, but there are still many. They are online platforms with no registration, no restrictions,’’ he said.
He added that many of these platforms are supported by individuals who have converted dollars into assets, fueling their continuous growth.
Gwadabe also mentioned that individuals are sourcing funds from the open market to fuel their transactions, further impacting the value of the Naira.
He said, “People have turned the dollar to be an asset; to be a commodity of trade that is why those platforms continue to thrive.”
“We have seen where people are buying dollars into their domiciliary accounts to finance these schemes.
“A lot of millions of dollars are going out from the system. It is one USD to one USDT. The market can be liquid.
“Binance alone has four billion dollars liquidity and more than two million transactions.
“Most of them source money to finance their transactions from the open market, and that is one of the reasons why Naira is depreciating,’’ he said.
(NAN)
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