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Tag: ABCON

  • ABCON: fake $100 bills in circulation

    The Association of Bureaux De Change Operators of Nigeria (ABCON) has alerted the public of ongoing security investigation on $100 bills being imported from India into Nigeria.

    The ABCON President, Aminu Gwadabe, who disclosed the development to financial journalists after the group’s National Executive Council (NEC) Meeting in Lagos, said the $100 bill is majorly counterfeited because of huge profit margins that come with it.

    He said some of the fraudsters objective is not only to make profit, but  to undermine Nigeria chances for automatic membership of the Financial Action Task Force (FATF) after assessment of the country’s  financial system scheduled for the first quarter of this year.

    The ABCON boss said the issue of fake dollar in circulation has been observed and reported at the relevant security agencies adding that the ABCON, has in the interest of the economy and Bureaux De Change (BDCs) businesses, secured Central Bank of Nigeria (CBN) and Economic and Financial Crimes Commission (EFCC) backing to begin nationwide campaign against fake currencies in the country.

    He said rising cases of fake currencies in circulation has led to huge losses to BDC operators and the economy.

    Gwadabe said that ABCON, is educating the public on how to identify fake dollar bills in order to protect the image of the country in the eyes of foreign investors.

    “It is part of our objectives which in enshrined on our constitution as an association to eliminate the incidences of fake currencies circulation thereby enhancing the image of the country and transparency in our operations,” he said.

    Gwadabe said the ABCON NEC has therefore released a guide to all BDCs on how to detect a fake dollar bill. He disclosed that there are seven dollar bills  of $1, $2, $5, $10, $20, $50 and $100 and seven steps to authenticate them.

    “The weight of each bill is one gram, 2.61 inches wide and 6.14 inches  length. It is 75 per cent cotton and 25 per cent linen. Your finger can feel thickness and texture. Besides, the portrait water mark is partly overlapped by the Treasury seal, while the $100 bill is printed on the right side of the bill. The strip is thin, faint and runs vertically from top to bottom to the left of the watermark portrait. Also, the 3D security ribbon, also called the thread,  is bright blue and vertical on the bill,” he said.

    Continuing, Gwadabe explained that the raised printing feels rough on right shoulder of Benjamin Franklin portrait while the colour shifting ink works under ultra violet light.

    He added that the dollar bill undergoes micro printing, which is the production of recognizable patterns or characters in the bill at a scale that requires magnification to read with the naked eye. To the unaided eye, the text may appear as a solid line.

    He said that currency commonly exhibits the highest quality (smallest size) of microprint because it demands the highest level of counterfeiting deterrence.

    Gwadabe said the BDCs  have over the years, remained a potent monetary policy tool for exchange rate stability and promoting transparent foreign exchange operations in the country.

    “The BDCs have helped the government in creating over 30,000 jobs, thereby reducing the unemployment rate in Nigeria. The BDCs have continued to make foreign exchange available to the critical retail end users thereby deepening forex access in the country. This campaign against fake dollar is aimed at ensuring that forex users get value for their money,” he said.

    Continuing, Gwadabe said that BDCs have also been enhancing price discovery and transparency in the foreign exchange market.

    “The operations of BDCs have also raised the level of investors’ confidence and diaspora remittances in the country. The BDCs under my leadership will continue to operate within set regulations and highest level of transparency in forex dealings,” he stated.

  • ABCON alerts public over fake $100 bills import from India

    .Gets CBN, EFCC nod on campaign against fake currency

     

    The Association of Bureaux De Change Operators of Nigeria ( ABCON ) on Friday alerted the public over ongoing security investigation on $100 bills being imported from India into Nigeria.

    The ABCON President, Alhaji Aminu Gwadabe, who disclosed the development to financial journalists after the group’s National Executive Council (NEC) Meeting in Lagos, said the $100 bill is majorly counterfeited because of huge profit margins that come with it.

    He said some of the fraudsters objectives is not only to make profit, but to undermine Nigeria chances for automatic membership of the Financial Action Task Force (FATF) after assessment of the country’s financial system scheduled for the first quarter of this year.

    The ABCON boss said the issue of fake dollar in circulation has been observed and reported at the relevant security agencies adding that the ABCON, has in the interest of the economy and Bureaux De Change (BDCs) businesses, secured Central Bank of Nigeria (CBN) and Economic and Financial Crimes Commission (EFCC) backing to begin nationwide campaign against fake currencies in the country.

    He said rising cases of fake currencies in circulation has led to huge losses to BDC operators and the economy.

    Gwadabe said that ABCON, is educating the public on how to identify fake dollar bills in order to protect the image of the country in the eyes of foreign investors.

    “It is part of our objectives which in enshrined on our constitution as an association to eliminate the incidences of fake currencies circulation thereby enhancing the image of the country and transparency in our operations,” he said.

    Gwadabe said the ABCON NEC has therefore released a guide to all BDCs on how to detect a fake dollar bill. He disclosed that there are seven dollar bills of $1, $2, $5, $10, $20, $50 and $100 and seven steps to authenticate them.

    “The weight of each bill is one gram, 2.61 inches wide and 6.14 inches length. It is 75 per cent cotton and 25 per cent linen. Your finger can feel thickness and texture. Besides, the portrait watermark is partly overlapped by the Treasury seal, while the $100 bill is printed on the right side of the bill. The strip is thin, faint and runs vertically from top to bottom to the left of the watermark portrait. Also, the 3D security ribbon, also called the thread, is bright blue and vertical on the bill,” he said.

    Continuing, Gwadabe explained that the raised printing feels rough on right shoulder of Benjamin Franklin portrait while the colour shifting ink works under ultraviolet light.

    He added that the dollar bill undergoes micro printing, which is the production of recognizable patterns or characters in the bill at a scale that requires magnification to read with the naked eye. To the unaided eye, the text may appear as a solid line.

    He said that currency commonly exhibits the highest quality (smallest size) of microprint because it demands the highest level of counterfeiting deterrence.

    Gwadabe said the BDCs have over the years, remained a potent monetary policy tool for exchange rate stability and promoting transparent foreign exchange operations in the country.

    “The BDCs have helped the government in creating over 30,000 jobs, thereby reducing the unemployment rate in Nigeria. The BDCs have continued to make foreign exchange available to the critical retail end-users thereby deepening forex access in the country. This campaign against fake dollar is aimed at ensuring that forex users get value for their money,” he said.

    Continuing, Gwadabe said that BDCs have also been enhancing price discovery and transparency in the foreign exchange market.

    “The operations of BDCs have also raised the level of investors’ confidence and diaspora remittances in the country. The BDCs under my leadership will continue to operate within set regulations and highest level of transparency in forex dealings,” he stated.

  • Naira stable despite election fears, says ABCON

    • CBN’s, BDCs’ reforms hailed

    The naira has in over 18 months remained stable at both the official and parallel markets despite several odds facing it ahead of the 2019 general elections, President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe has said.

    Speaking yesterday to financial journalists in Lagos, the ABCON boss commended the Central Bank of Nigeria (CBN) financial sector reforms, and the contributions of the Bureau de Change (BDC) operators to the current exchange rate stability, as against the common practice of currency devaluations and depreciations across the world at election times.

    The naira exchanges at N306/$1 in the official market and N358/$ in the parallel market despite the election fears.

    Gwadabe said that the absence of foreign exchange spikes and volatility before and during the 2019 elections year is a major achievement by the CBN and Federal Government. He said: “The dexterity of the government policies in ensuring that naria remained stable in an election year is commendable. Election years, as witnessed during the 2015 general elections, are marred by exchange rate volatility and spikes in the market”.

    He disclosed that financial pundits had had in early 2016, speculated that the naira will depreciate to as low as N1000/$. The election period of 2015, he added, witnessed over $100 billion capital flight outside the country. The activities of currency hoarders, speculators and rent seekers reached its peak in 2015.

    He disclosed that ironically, the trend in the foreign exchange market during this year’s election showed hope for the economy, sustained exchange rate stability, adequate dollar liquidity, increasing foreign capital inflows and most importantly, a unified and convergent exchange rate of the BDCs and the parallel market. These feats, he said, are commendable by all standards.

    On deepening capacity/skills of industry operators, Gwadabe    appealed  to the CBN to issue Letter of Consent to ABCON proposed training institute.  This, he added, is going to boost the current ABCON Management commitment to capacity building for its members to stimulate competency in the sector and make room for better foreign exchange management.

    Continuing, Gwadabe also listed factors that led to the current successes in the foreign exchange market. He said: “First, I want to congratulate the leadership of the CBN for a well coordinated, proactive exchange rate management strategies which include creation of several foreign exchange windows to deepen liquidity and price discovery, restriction of foreign exchange on 42 items that can be produced locally, self sufficiency in rice production and continuous partnerships between the apex bank and BDCs, all led to the current exchange rate stability enjoyed in the country”.

    According to Gwadabe, the contribution of the security agents in the effective surveillance of Nigeria’s boarders/ airports to checkmate illegal foreign currency evacuation have in no small measure strengthened  exchange rate and promoted economic growth.

    He also praised the BDC operators under the ABCON leadership for staying in the business despite  lower margins and risk of operations they face on daily basis.

    The ABCON boss said the BDCs have remained resolute in ensuring sustainable and stable exchange rate, price discovery and uniformity in the market pricing for the dollar against the naira.

    He said the current one per cent transaction margin that operators take is not sufficient for BDCs’ sustained operation, and totally falls below global standard of 10 per cent.

    He said the BDCs under the ABCON leadership have demonstrated patriotism in the business by staying and sustaining it despite several challenges facing  the sector.

     

     

  • ABCON seeks higher transaction margin for BDCs

    The Association of Bureaux de Change Operators of Nigeria (ABCON) yesterday demanded for higher transaction margins for Bureaux De Change (BDCs) as being practiced in other parts of the world.

    Speaking during the ABCON Live Run Automation Project launch in Lagos, ABCON President, Aminu Gwadabe, said 10 per cent transaction margin is the common practice across the world, but Nigeria BDCs only get about one per cent.

    He said the automation of BDCs’ operations is a good step needed to get the regulators consider raising the transaction margin for Nigerian BDCs.

    Gwadabe who spoke on the theme: Digitizing  BDC Operations for Efficiency, Transparency and Regulatory Compliance, said the project will enhance BDCs compliance with set regulations and promote market integrity.

    The event was attended by representatives of the Central Bank of Nigeria (CBN), Nigeria Interbank Settlement System (NIBSS), Travelex Nigeria, Nigerian Financial Intelligence Unit (NFIU) among others.

    Also speaking on the transaction margin, General Manager, Travelex Nigeria, Tony Enwereji, said that in other countries where the company operates, transaction margin is always around six per cent.

    He said the automation of BDCs operations is expected to lead to transaction margin raise for Nigerian operators.

    Gwadabe explained that the portal will sustain transparent transactions in the BDC corridor, boost the morale of operators and ensure continuous operations in ABCON.

    He said that the era of manual filling of returns is over with the new portal.

    He said ABCON has fully upgraded its Information Communication and Technology (ICT) platforms, to achieve full digitization of BDCs operations in line with its goal of sustaining transparent operation and prompt rendition of weekly returns to regulatory agencies.

    “Of special note is also the integration of our platform to immigration platform for the verifications of international passport. Already, we are in advance engagement with the Irish technology experts for the achievement of this idea”. “Besides, the ABCON had last year launched the www.naijabdcs.com. A website that displays foreign currency rates thrice daily to serve as a reliable platform for local and international investors, who will rely on it to access uniform forex rate across states, regions and markets nationally,” Gwadabe said. He said the ABCON coordination journey of automation and digitilization of BDCs’ operations started in 2016 with the launch of our www.naijabdcs.com rate display site and its mobile applications which can be downloaded from goggle play store.

     

     

  • EFCC, ABCON take fight against money laundering to MM2

    The Economic and Financial Crimes Commission (EFCC) and the Association of Bureaux De Change Operators of Nigeria (ABCON) have taken the campaign against money laundering and terrorism financing to Bureaux de Change (BDC) operators at the Murtala Muhammed Airport 2 (MM2), Lagos.

    Speaking during the sensitisation programme against money laundering and terrorism financing campaign at MM2, which was attended by many BDC operators, EFCC Chairman, Ibrahim Magu, called for continuous sensitisation on issues around Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) reporting  to improve transparency in BDCs operations. He said the EFCC will continue to campaign for financial integrity and transparency in BDCs’ operations.

    Other stakeholders at the event also spoke on the use of BDCs for illicit political transactions, illegal border cash evacuation, reporting of suspicious transactions, fraud accounts transactions and cash dollar deposits on domiciliary accounts.

    Independent sources alleged that the choice of MM2 was because the centre remains a major spot for illegal funds transfer and border cash evacuation in the country.

    Speaking at the event, ABCON President, Aminu Gwadabe, said the BDC sector is part of the financial system and is seen as the weakest link in the financil system. He appealed to the regulators to approve  the group’s request  for the establishment of the institute’s Training Centre  and building capacity of over 4,500 BDC operators for better understanding of the menace of money laundering and terrorism financing.

    Gwadabe, said the anti-money laundering sensitization programme  was intended to familiarize BDC operators with the process of money laundering – the criminal business used to disguise the true origin and ownership of illegal cash – and the laws that make it a crime.

    Gwadabe  said that the programme was also meant to help BDCs maintain minimum standard of record keeping and increasing level of investors confidence for the economy.

    He said the group will continue to pursue Nigeria’s admission into the Financial Action Task Force (FATF) due this year.

    The  FATF is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions.

    The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.

    Gwadabe said the sensitization of BDCs and other capacity building for BDCs will create awareness on the need to check money laundering and terrorist financing in this period of electioneering; ensure that BDCs are not used to launder funds by Politically Exposed Persons (PEPs). It will also upscale BDCs’ compliance with the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) for Banks and Other Financial Institutions in Nigeria Regulations, 2013.

    ABCON has for years been an active group in the financial services sector, concentrating more on the BDC segment of the market and ensuring that global best practices are followed in BDCs operations.

    The association has on its own, organised trainings for its members, and also partnered with Nigerian Financial Intelligence Unit (NFIU) and the EFCC to build capacity for operators. BDC operators have been trained on how they can help in tackling money laundering, terrorist financing and the benefits of keeping records of their transactions.

    The anti-money laundering training that ABCON organised with NFIU in Lagos was meant to familiarize BDCs with the process of money laundering — the criminal business used to disguise the true origin and ownership of illegal cash — and the laws that make it a crime.

    The EFCC/ABCON goal is to ensure that BDCs are not used to launder funds by Politically Exposed Persons (PEPs) especially at this period of electioneering.

     

  • ABCON to CBN: make BDCs direct agents of IMTOs

    The Association of Bureaux De Change Operators of Nigeria (ABCON) has urged the Central Bank of Nigeria (CBN) to implement provisions of its 2014 circular by making BDCs direct agents of international money transfer operators (IMTOs) as obtained in other countries.

    It also sought the restoration of its status as a self-regulatory organisation (SRO) to ensure effective coordination of the over 4,5000 BDCs across the country.

    Its Economic Review for the fourth quarter (Q4) of last year released at the weekend said: “In as much as the regulatory bodies in Nigeria have realised the indispensable role that the BDC sub-sector occupies in the stabilisation of the currency in Nigeria, the sector should be further strengthened and developed to achieve greater systemic efficiency.

    “To this end, the professional training institute for dealers and operators being promoted by ABCON should be given appropriate support by the regulators and members to key into the project.

    “The CBN should implement its 2014 circular for making   BDCs direct agents of international money transfer operators as obtained in other climes.

    “The CBN should revisit the suspension of ABCON as a self-regulatory organisation for result-oriented coordination of the over 4500 CBN licensed BDCs.

    “CBN should support ABCON to increase public awareness and public visit to naijabdcs.com, the Association’s live exchange rate platform, which contributed immensely to the price discovery, transparency in the foreign exchange market and has become reference point for source of  credible  exchange rate information.”

    ABCON also urged BDCs to embrace the cloud base automation of their operations it initiated for internal reorganisation, efficiency, global competitiveness and volumes driven transactions.

    It also urged BDCs to explore more sophisticated and dynamic marketing techniques this year to track billions of foreign currencies floating within the economy and flowing into the “Black Market” thereby incubating capital flight and money laundering.

  • ABCON, NFIU advise BDCs to hire Designated Compliance Officers

    •Hold anti-money laundering reporting training

    The Association of Bureaux De Change Operators of Nigeria (ABCON) and Nigeria Financial Intelligence Unit (NFIU) have advised Bureau de Change (BDC) operators to employ Designated Compliance Officers  to handle all compliance-related issues.

    The advise came at the end of a four-day joint nation-wide training/sensitization programme on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) reporting for Bureaux de Change (BDC) operators by both institutions.

    The training, which has been ongoing since December 11, 2018, focused on the obligation of registering and filling reports on the NFIU goAML -Anti-Money Laundering portal. A session was held on  January 5, 2019 in Kano and another session held on January 22, 2019 in Abuja among others.

    As part of the NFIU/ABCON partnership, ABCON has taken the train-the-trainers training of the NFIU to the six geopolitical zones of the country in order to strengthen capacity for over 4,000 BDC operators nationwide.

    Speaking to financial journalists at the end of the training, ABCON President, Alhaji Aminu Gwadabe, said the anti-money laundering training is intended to familiarize BDC operators with the process of money laundering – the criminal business used to disguise the true origin and ownership of illegal cash – and the laws that make it a crime.

    Gwadabe said the policy on the recruitment of the Designated Compliance Officers by BDCs is  already being implemented by ABCON and remains part of the association’s vision to revolutionalise BDC operations in Nigeria for global competitiveness and transparency.

    He said that money laundering and terrorist financing pose not only a threat, but are enormous threats and challenges to the economy, security, and social life in Nigeria, the region and globally.

    In a statement by NFIU commending ABCON for the training, Ibrahim Pindar, said: “We wish to congratulate the ABCON on the attendance recorded on the concluded training of BDC operators on the key Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) obligation of registering and filling reports on the goAML -Anti-Money Laundering portal”.

    The NFIU advised ABCON to train BDCs regularly so as to cover AML/CFT knowledge-gap identified from most operators and also ensure that their members register on the goAML portal.

    NFIU recommended that: “Those trained by the NFIU team should be engaged by ABCON to train their members on continuous basis. Any change of Compliance Officer should promptly be reported to the NFIU. ABCON should ensure that the operators have alternates for their compliance officers for succession planning and continuity.”

    Gwadabe  said that the training was also meant to help BDCs maintain minimum standard of record keeping and increasing level of investors confidence for the economy.

    The training, Gwadabe added, will create awareness on the need to check money laundering and terrorist financing in this period of electioneering; ensure that BDCs are not used to launder funds by Politically Exposed Persons (PEPs). It will also upscale BDCs’ compliance with the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) for Banks and Other Financial Institutions in Nigeria Regulations, 2013.

     

     

     

     

  • The Association of Bureaux De Change Operators of Nigeria (ABCON) yesterday said its  strategic partnership with  the Central Bank of Nigeria (CBN) on foreign exchange supplies and sustenance of market integrity helped naira stability last year.

    The foreign exchange rates collected across  different markets and released yesterday by ABCON showed that in Lagos, last year’s closing rates –  dollar buying/selling rates stood at N358/359.5; Pounds Sterling, N452/N457 and Euro N404/N409.5 respectively.

    In Port Harcourt, dollar buying/selling rates closed the year at N359/361; Pounds Sterling, N457/N464 and Euro N405/N408 respectively. In Abuja, dollar buying/selling rates closed last year  at N359/360; Pounds Sterling, N464/N467 and Euro N407/N410 while In Kano, dollar buying/selling rates were at N359/360; Pounds Sterling, N465/N472and Euro N407/N411 respectively.

    ABCON President, Aminu Gwadabe, who disclosed this to newsmen at the end of year briefing in Lagos, said both the apex bank and ABCON worked together in the course of the year to achieve exchange rate stability, which is one of the agenda set by the CBN Governor, Godwin Emefiele at the beginning of his tenure.

    Gwadabe said the partnership between both institutions will continue in the New Year to make Naira sovereign in the forex market.

    He said:  “The strategic partnership between the Central Bank and ABCON continued to  make the naira sovereign in the foreign exchange market. The opening market rate N360/361 to dollar on the two-way quote has been stable. This sustained stability made the Bureaux De Change (BDCs) to continue to be the potent monetary policy tool of CBN exchange rate managements”.

    According to the ABCON boss, the market distortions by forex speculators, rent seekers, currency hoarders and frivolous demand that usually endangered naira stability have been successfully checkmated. He said it was no longer profitable to attack Naira in the market. Gwadabe said that ABCON last year created Naijabdcs.com, a live rate engine room     created to provide uniform rate for all BDCs across the country.

    The Naijabdcs App displays live  exchange rates for different currencies against the naira. “It was created by ABCON to bring about price discovery and transparency in the foreign exchange market.

  • ABCON: $3.1b sale to BDCs sustains naira stability

    Association of Bureaux De Change Operators of Nigera (ABCON) said there was 163 per cent increase in dollar sales to bureaux de change (BDCs) to $3.1 billion in the first half of the year. It said it helped to sustain exchange rate stability and protected 25,000 jobs in the subsector.

    Its President, Alhaji Aminu Gwadabe stated this while commenting on the half year (H1’18) economic report released by the Central Bank of Nigeria (CBN) last week.

    The report among other things showed that CBN  dollar sales to BDCs  rose by 163 percent to $3.1 billion in the first half of the year (H1’18) from $1.2 billion in the corresponding period of 2017 (H1’17).

    The report read: “The significant increase in BDC sales, reflected the bank’s policy to increase the supply of foreign exchange to small end-users.”

    The CBN had on May 27, 2018, increased weekly dollar sales to each BDCs by 50 per cent to $60,000 per week from $40,000 per week.

    Gwadabe noted that the 163 percent increase in foreign exchange sales to BDCs is attributed to the success recorded in the Investors and Exporters (I&E) window introduced by the CBN and the transparency in the forex market, facilitated by www.naijabdcs.com,  the live exchange rate platform introduced by ABCON.

    He added that the development enabled the apex bank  to empower  BDCs in achieving sustained exchange rate stability, convergence of exchange rates which by extension  discouraged rent seeking and other  speculative tendencies in the market.

    On the impact of the increased forex sales to BDCs, Gwadabe said: “The overall impact in the economy includes employment generation of over 25,000 in the BDC sub sector and enhanced investors’ confidence.”

    He added that the recent efforts of the association to automate operations of BDCs will help to consolidate on these gains.

    “The ABCON automation drive of BDCs operations designed to enhance their visibility and attractiveness is already giving them an information technological (IT) edge  in the quest to become direct agents of international money transfer operators,” he said.

  • ABCON: currency swap deal ‘ll strengthen naira

    •Group demands dollar divestment for BDCs

    The Association of Bureaux De Change Operators of Nigeria (ABCON) has applauded the $2.5 billion currency swap agreement between the Central Bank of Nigeria (CBN) and the People’s Bank of China (PBoC), saying the deal will promote naira’s sovereignty in Africa.

    ABCON President, Aminu Gwadabe, who spoke at the weekend, in Lagos, said the naira will benefit hugely from the deal given the rising influence of Chinese Yuan in the international market. He said the admittance of Yuan into the basket of International Monetary Fund (IMF) currencies and the Naira/Yuan swap deal will actualise the dream of naira sovereignty in Africa.

    The naira has remained stable at both the official and parallel markets, as the CBN continues its weekly dollar interventions. The naira, which in February 2017, was exchanging at N520/$ in the parallel market now exchanges at N361/$ while rate at the official market remains N305.9/$. The Yuan has equally made significant progress this year, appreciating 1.8 per cent against the dollar to become the world’s second-strongest Asian currency.

    The ABCON chief also urged the CBN to consider diversifying dollar disbursement to BDCs with percentage amount of Yuan to meet the critical needs of their numerous clients travelling to China for personal and business purposes. He explained that if implemented, such move will further deepen the interest in purchasing Yuan and reduce dollar demand.

    Gwadabe the swapping was part of the CBN’s plan to keep the naira stable and protect the foreign reserves domiciled in dollars. He said the deal would provide adequate local currency liquidity for Nigerian and Chinese industrialists and reduce difficulties they face in searching for the greenback.

    He explained that in local currencies, the swap is worth 15 billion Renminbi (RMB)/Yuan or N720 billion adding that the three-year renewable deal will allow  for  the  direct exchange of RMB and naira for the purpose of trade and direct investment between the two countries. The agreement could be renewed on expiration, at the instance of both countries.

    The ABCON boss said Bureaux de Change (BDCs) would benefit from the swap deal given that a stable and strong naira is good for the economy and operators, adding that increased use of Yuan in trade deals will also open a new business opportunity for BDC operators.

    According to Gwadabe, ABCON will continually support CBN in achieving its exchange rate stability mandate and promoting economic growth through increased global partnerships and collaborations.

    According to the guideline, the swap agreement allows for both banks to among other purposes, make available liquidity in their respective currencies for the facilitation and promotion of trade and investments across Nigeria and China. This will be done through the purchase, sale and subsequent repurchase and resale of the Chinese Yuan (CNY) against naira and vice versa.

    Gwadabe reiterated that the said swap deal would make smooth bilateral trade, boost investment, and protect the financial market in both countries as well as cut dollar demand by Nigerians entrepreneurs importing from China. All these, he said, will firm the value of the local currency.

    He said that  China has  remained   Nigeria’s largest  import  partners  over  the  last  five  years, with  imports from  China  standing at over 20 per cent of Nigeria’s total imports. He therefore advised that to achieve the full gains of the deal, Nigeria has to take steps that boost its trade balance with China by raising the quality of its local products to make them more attractive and acceptable to the Chinese.

    He said the deal will reduce currency transaction cost for importers that go for Yuan while also easing foreign exchange liquidity pressures in periods of rate volatility and/or scarcity for Nigeria.

    “The deal will expand the BDCs capacity to handle new business transactions in Yuan. Besides, BDCs in both countries will have their transaction base expanded, including new opportunity to transact higher volume of Naira/Yuan in the export/import of equipment, raw materials and finished goods,” he said.

    Gwadabe praised the CBN-led Bankers’ Committee for promising incentives to Nigerian businesses that import their machinery and goods with Yuan instead of dollar, adding that such act will deepen entrepreneurs’ interest in the swap deal.

    According to the regulations for transactions with authorized dealers in Renminbi, importers intending to import from China shall obtain Pro forma invoice denominated in Renminbi as part of the documents required for registration of Form ‘M’.