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Nigeria’s BDC Operators Halt Operations Over Dollar Shortage

BDC (News Central TV)

The Bureau De Change (BDC) operators in Nigeria’s Federal Capital Territory (FCT) Abuja have announced a shutdown of operations due to the scarcity of US dollars.

This was made known on Wednesday by the chairman of the association, Abdulahi Dauran.

The naira closed at an all-time low of N1,482 per US dollar on the official window on Tuesday, while it held steady at N1,450 per US dollar on the parallel market.

Dauran blamed cryptocurrencies and internet commerce for the closure. He announced that the company would close on Thursday, February 1, 2024.

This event coincides with new efforts by the Central Bank of Nigeria (CBN) to stabilise the fluctuating exchange rate of the country.

Deposit Money Banks were given an order by the apex bank on Wednesday to sell their excess dollar stock by February 1, 2024.

Lenders and BDC operators were also cautioned by the CBN not to stockpile surplus foreign currency for financial advantage.

Officials from the bank assert that they believe certain commercial banks maintain long-term foreign exchange positions to take advantage of the unpredictable fluctuations in exchange prices.

A new set of recommendations intended to lower the dangers connected to these practices was also created by the new CBN regulation.

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