Abuja BDC operators shut down due to dollar scarcity

Bureau De Change (BDC) operators in Abuja have shut down their operations indefinitely February 1, 2024, due to the unavailability of dollars, as announced by
 the association’s chairman, Abdulahi Dauran, on Wednesday, January 31, 2024.

Dauran stated that the scarcity of dollars was responsible for their decision to shut down. The naira has continued to depreciate against the dollar, and the BDC operators blame online business transactions and cryptocurrency for the scarcity of dollars.

Despite effort by the Central Bank of Nigeria which injected over $500 million to clear the forex backlog, the naira has continued to tumble against the dollar

Research by Newsmart showed that BDC operators in Kano, Nigeria's second-largest city, also shut down their operations by 12 noon, same day.

The naira closed at an all-time low of N1,482 against the United States dollar on the official window on Tuesday while on the parallel market, it remained stable at N1,450/$.

The development is coming amid fresh moves by the Central Bank of Nigeria to stabilise the nation’s volatile exchange rate.

The apex bank on Wednesday ordered Deposit Money Banks to sell their excess dollar stock by February 1, 2024.

The CBN also warned lenders against hoarding excess foreign currencies for profit.

According to officials, the bank believes some commercial banks hold long-term foreign exchange positions to enable them to profit from the volatile movements of exchange rates.

The new directive also introduced a set of guidelines aimed at reducing the risks associated with these practices.

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