Swap by Flutterwave: Exchanging Platform for Solving FX Problems in Nigeria

Swap is an exchanging platform launced to regulate the FX market in Nigeria. Usually, commercial banks in Nigeria manages and controls 75% of foreign exchange transactions. Interestingly, the inception of Flutterwave’s Swap could be a way to reduce the dependence on banks for FX. Backed by CBN, Flutterwave has partnered with Kadavra, a Bureau De Change (BDC) company in Nigeria and Wema Bank, the 10th biggest Nigerian bank by assets to make Swap work in the sense of offering liquidity and FX for Swap.

According to the acting governor of the CBN, Mr Folashodun Shonubi, Swap doesn’t need a new operating license from the Central Bank of Nigeria (CBN), Flutterwave will be leveraging its International Money Transfer Operator (MTO) license to get or buy foreign currency, Kadavra will be using its Bureau De Change (BDC) license to sell it, while Wema Bank will be supporting the entire process by converting it into user’s naira account.

In the press conference where Swap was introduced, Mr Shonubi highlighted the potentials of Flutterwave’s Swap. He said Swap could solve two major problems facing Nigeria’s FX market: the lack of collaboration between banks and the dependence on cash. “we believe (Swap) will help moderate the rates for the BDCs and at the same time differentiate BDCs from black market transactions,” Shonubi said.

Flutterwave's Swap Conference Meeting
At Swap Conference: Founder/CEO Flutterwave, CEO Kadavra, Acting CBN Governor, and Wema Bank MD/CEO.

However, recall that the CBN promised to clear all FX backlogs within two weeks. As part of it effort to keep the promise, the Apex bank publicised $3billion AFREXIM loan which still doesn’t yield any results in clearing the FX backlogs. Backing and supporting Flutterwave’s Swap is another move for CBN to clear years’ worth of FX backlog close to its chest. Because, failure to clear these backlogs will keep significant demand flowing to the parallel market and limit the CBN’s ability to offer price stability.

Flutterwave’s Swap is digitizing the process of getting FX for Nigerians through leveraging a partnership with two dedicated financial institutions in the country. This will help CBN accomplish her mission of bridging the Gap between FX market and cashless policy. Cashless FX Market would help differentiate between what is called regulated market, which is a BDC, as opposed to the ones which the central bank does not regulate – Black Market.

With this, all unregulated FX transactions would stop and any Bureau De Change (BDC) that refuses to go digital would be phased out of the system. – TC report.

Flutterwave’s Swap FX Currency

Swap will allow Nigerians to US dollars (USD), European Euro (EURO) and Great British Pounds (GBP). Users can hold assets in these currency in their Swap Account and convert it to naira anytime they want. With the partnership with Kadavra and Wema Bank, converting from foreign currency such as USD, EUR and GBP on the Flutterwave’s Swap is seamless and easy.

Flutterwave’s Swap Account

Swap is only available on Flutterwave’s web app and for existing Flutterwave users and newly Nigerians who registered only for the product. However, to create or register a Flutterwave’s Swap Account, you must pass through multiple/several identity verification phases. Swap will requires you to provide and submit your documentation online. 

Furthermore, you’ll demanded to submit yout bank verification number (BVN), a selfie, the reasons why you want to get FX, and documentation to support your reasons. After submitting all the required information and legal documents, you can then input your account numbers get your money deposited into it instantly.

Additionally, Swap is also available via API for Business, Banks and Send App, providing one-click access to the exchanging services.

Swap Features and Benefits

Aside the fact that Flutterwave’s Swap is providing FX at stable rate online, the finance product will also be offering 10 millions of cards from October to users. This move will be beneficial for Nigerians who require swift access to Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) to facilitate their educational goals, business endeavors, and diverse travel requirements.

Additionally, Swap is digitizing the Nigerians Forex market in accordance with CBN’s plans to wipe off unregulated FX transactions and make FX market cashless. This will help the Apex bank to offer price stability in the Forex market.

Conclusion

Flutterwave’s Swap facilitate currency exchanges for businesses and consumers to ensure seamless and secure gateway of granting consumers greater foreign currency purchasing power and businesses massive investment potential. Swap is giving access to global currencies like Dollars, Euros, and British Pounds. With a convenient card issuance system, Swap users will be able to make use of their foreign currency via web, POS and ATM transactions.

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