‘We Do Not Currently Sell Dollars To Nigerians’ — BDC Operators Close Market
The Bureau De Change, BDC union Today, is going to implement a “no sales” policy. The choice was made following careful consideration of several strategies to lessen the naira's decline.
According to reports, members of the Association of Bureau De Change (BDC) Operators have decided not to allow transactions on the market today, February 1, 2024.
MON DIARIES understands, the operators have decided not to sell US dollars to clients because of the naira's persistent decline in value relative to the US dollar.
The Union lamented the fact that its members were being held responsible for the naira's continuous decline in value.
In light of this, the BDC operators decided to implement a “no sales policy” today following careful consideration of the best ways to slow the naira's decline.
“Nobody is coming to market tomorrow (today). We want to close the market because, honestly, the naira is just crashing anyhow. This was caused by some media reports this week that the dollar was now selling for N1,500 even though we were still selling at N1,400. Now everybody is blaming black market operators and that's why we decided that the market will remain closed tomorrow (today).
“We will resume next tomorrow (tomorrow), and the rate should be less than N1,400/$,” according to a BDC source on Wednesday.
Also, the Association of Bureau De Change (BDC) Operators' Abuja branch has declared that, as of Thursday, February 1, 2024, their business location will be permanently closed.
The Association's chairman, Abdulahi Dauran, explained that the decision was made due to the lack of US dollars, but he also mentioned that the lack of dollars was caused by cryptocurrency and online banking transactions.
The Central Bank of Nigeria (CBN) has ordered Deposit Money Banks to sell their excess dollar reserves by February 1, 2024, in an attempt to stabilize the volatile exchange rate.
This action is a component of the CBN's larger plan to address the volatility in the foreign exchange market, which was revealed in a circular that was published on Wednesday.
The central bank has raised concerns that some commercial banks have been maintaining long-term foreign exchange positions to profit from the fluctuations in exchange rates.
The circular “Harmonization of Reporting Requirements on Foreign Currency Exposures of Banks” contains the new guidelines that are intended to reduce the risks related to these practices.
This directive comes right after another one that forbade banks and foreign exchange dealers from reporting erroneous exchange rates.
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