Abuja’s Bureau de Change Shutters Doors Amid Forex Crisis: Unraveling the Impact and Solutions

Agency ReporterFebruary 1, 2024

1 minute read

In the face of Nigeria’s escalating foreign exchange crisis, Bureau de Change operators in Abuja have made a significant announcement – the indefinite closure of their business premises starting from February 1, 2024, owing to the scarcity of foreign exchange (FX).

Abdullahi Dauran, the Chairman of BDC operators in Abuja, elucidated the decision in a statement released on Wednesday. The core reason behind this move, according to Dauran, is the acute shortage of dollars, a direct consequence of the surge in online business transactions and the prevalence of cryptocurrencies.

In our pursuit for deeper insights, Newsflash Nigeria attempted to reach Aminu Gwadabe, the President of the Association of Bureaux de Change Operators of Nigeria (ABCON), for comments on the situation. Unfortunately, Gwadabe’s response lacked clarity as he mentioned, “I saw it online, too.”

The latest data from FMDQ on Thursday revealed a marginal appreciation of the Naira, standing at N1,455.59 per US dollar, compared to N1,482.57 on Wednesday. This follows a concerning depreciation observed on Tuesday, where the official market rate dropped to N1,482.57 per US Dollar, surpassing the N1,470 quoted at the parallel market.

Despite the Central Bank of Nigeria’s efforts, including a substantial injection of over $500 million to clear the forex backlog and other interventions, the Naira’s value continues to decline against the dollar.

However, a ray of hope emerged on Wednesday, as the Central Bank of Nigeria introduced fresh guidelines for commercial banks, aimed at curbing foreign currency speculation and hoarding. This initiative serves as a potential solution to address the ongoing depreciation of the Naira in the forex market.

As Abuja’s Bureau de Change grapples with the challenges posed by the FX scarcity, the intricacies of the situation become more apparent. Stay tuned as we delve into the repercussions and explore viable solutions to navigate through this turbulent economic landscape.