Nigerian bureau de change union asks the government to ban Binance

ABCON believes the continued operation of Binance in the country threatens the naira’s stability.

Nigerian bureau de change union asks the government to ban Binance
Assets: Freepik; Binance | Design by Samuel Ojo for Mariblock. 

The Association of Bureau De Change Operators of Nigeria (ABCON) has urged the federal government to ban the operations of Binance, the global cryptocurrency exchange. The union claims the company is aggravating the pressure on the naira.

Key quote

The president of the union, Aminu Gwadebe, said:

“If you know about Binance, you will know that Binance trading is becoming the anchorage of both the investors and exporters window and the parallel market, which is unfortunate.
“So, we have to do something that can stop Binance. It’s a competition; we need to ban Binance, and the only way to do so is if we have liquidity.”

Quick facts

  • Gwadabe emphasized that Binance trading has become a significant player in both the Investor and Exporter window and the parallel market, noting that the platform has remarkable liquidity, with 1.2 million transactions occurring every second.
  • He said the Nigerian foreign exchange market has shifted from a positive outlook to a negative one.
  • According to him, pessimism in the market could erode citizen confidence, a crucial determinant of currency value worldwide.
  • He added that the naira is currently under much pressure from FX hoarding by banks and oil companies.
  • Still, he expressed hopes that with policies like the petrol subsidy removal and its benefits, the Central Bank will have access to inflows, enabling it to defend the fiat currency.

Key background

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