The federal government has been told to stop the operations of the cryptocurrency exchange company, Binance in Nigeria in order to strengthen the naira.
The call was made by the president of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe in an interview with newsmen in Lagos on Tuesday.
He suggested that the operations of Binance is one of the factors putting pressure on the naira and needs to be stopped.
“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, ” Gwadabe said.
“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.
“As I speak, Binance is the most liquid market. They do about 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.
“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, ” Gwadabe added.
Speaking further, the ABCON president said the naira is facing a lot of pressure and it’s something the current government inherited but action needs to be taken which is the objective of the unification of the exchange rate.
“There is a lot of pressure on the naira from foreign exchange hoarding by the banks and oil companies.
“Is it Nigerians that want to pay school fees, roundtripping, speculations, among others? All these galvanised, to put pressure on the naira.
“Spike and volatility did not start now, it’s something the present government inherited and has gone a long way in checking illegal behaviours around the foreign exchange market and that is the objective of the unification,” he said.
Naija News recalls the Securities and Exchange Commission (SEC) of Nigeria in June 2023, said Binance Nigeria was not registered, making its operations in the country illegal.
