According to local reports, the Association of Nigerian Bureaux De Change Operators (ABCON) has urged the Nigerian government to prohibit the activities of Binance within the nation.
The association claims that it has identified Binance as one of the major factors putting pressure on the Naira.
In an interview, the President of ABCON, Alhaji 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 you have liquidity.”
According to Gwadebe, Binance is the most liquid market doing 1.2 million transactions per second.
“So it’s a very liquid market but that is not a scary status, we can break it through our local content and peculiarities.”
The president of ABCON observed a shift from optimism to pessimism within the current foreign exchange market conditions. Gwadabe pointed out that when pessimism becomes dominant in market psychology, it can result in a decline of citizens’ confidence. He emphasized that such confidence is a crucial factor for any nation’s currency.
“So we are seeing a scenario where optimism is giving way to pessimism; investors are not coming, Nigerians don’t have confidence in the market and we have to look for external finances that are coming in as a quick fix,” he said.
“There is a lot of pressure on the Naira, from foreign exchange hoarding by the banks and oil companies.”
Binance is under pressure in the west African nation. The countries Securities Exchange Commission (SEC Nigeria) recently issued a cautionary notice to local investors advising them against using the Binance exchange.
According to the commission, Binance is conducting its operations in the country unlawfully. The commission emphasized that the company is not registered with them and therefore not subject to their regulations.
Follow us on Twitter for the latest posts and updates
__________________________________________
__________________________________________
