According to Nigerian Tribune, Aminu Gwadabe, the President of the Association of Bureau De Change Operators of Nigeria (ABCON), has raised concerns regarding the continuous depreciation of the Naira, attributing it to the profits being generated by forex trading platforms like Binance and peer-to-peer (P2P) platforms. In an interview with the News Agency of Nigeria, Gwadabe emphasized the detrimental impact of sustained profitability of platforms such as Binance on the stability of the Naira.
Gwadabe highlighted that platforms like Binance and other hidden online trading platforms pose a significant threat to the stability of the Naira due to their continuous profitability. He stressed the urgency of addressing this issue to prevent further depreciation of the Naira's value.
He explained that these P2P platforms, similar to Binance, enable speculators to use the dollar to purchase USDT, a stablecoin pegged at one-to-one with the dollar. According to Gwadabe, as long as these platforms remain profitable, the Naira will continue to depreciate.
Gwadabe pointed out that many of these online platforms operate without proper registration or restrictions, facilitating the flow of funds out of the system. He noted that individuals are converting dollars into assets to fuel these transactions, exacerbating the depreciation of the Naira.
Gwadabe mentioned that individuals are sourcing funds from the open market to finance their transactions on these platforms, further impacting the value of the Naira. He highlighted the substantial liquidity and volume of transactions on platforms like Binance, indicating significant outflows of dollars from the system, contributing to the depreciation of the Naira against the dollar.