Politicians Mopping Up Forex Ahead Party Primaries – BDC Operators

Nigerian politicians are mopping up the green back ahead of the party primaries, Bureau De Change Operators have lamented.

Gatekeepers News reports that most of the deposit money banks have had a shortfall in the supply of forex and have been unable to meet customers’ demands as operators in the black market are having a field day.

A bank customer, Ms Stella who spoke with The Nation, said she made a request to her bank for $4, 000 ahead of a foreign trip but got barely $2000 almost a week later.

According to her, when she approached the black market for the same, most of the operators complained of scarcity of some sorts, a development she claimed the latter attributed to activities by politicians.

Similarly, a bureau de change operator confirmed to the news medium that politicians have mopped up all the dollars in the parallel market due to the bribe and settlement that will occur during the party primaries this month and the month to follow.

“Most BDC operators have been under intense pressure from some of the political aspirants who have been using their fronts to buy up forex from every channel possible, including the black-market,” said the BDC operator who spoke on the condition of anonymity.

He was quoted to have said the rate of exchange will even go beyond N650-N700 benchmark before the convention because of the increased pressure by the politicians and aspirants, especially for dollars.

Gatekeepers News earlier reports that the exchange rate between the Naira and the US dollar according to the data released on the FMDQ Security Exchange, the official forex trading portal, showed that the Naira opened at ₦416.50 per dollar on Thursday, May 12, 2022, and closed at ₦420.00 per $1 on Thursday, May 12, 2022.

Concerned by the development, the Association of Bureaux De Change Operators of Nigeria (ABCON) has developed a roadmap campaign plan needed to save the naira from further decline and enhance exchange rate stability.

The ABCON National Executive Council said the move to save the naira was agreed upon by the body at the conclusion of its meeting in Lagos, where it unveiled strategies to save the local currency, bridge the exchange rate gaps as well as curb the volatility in the forex market.

The ABCON President, Aminu Gwadabe, said there was an urgent need to enhance dollar liquidity in the market and ensure the stability of prices in the economy.