Currency traders, commonly known as Bureau De Change (BDC) operators, have temporarily suspended their services in Abuja, the capital of Nigeria, as a response to the soaring exchange rate between the naira and the dollar.
Gatekeepers News reports that the decision, marked by a “no sales policy,” is anticipated to last for two days, specifically Thursday and Friday.
This development swiftly follows the Central Bank of Nigeria’s (CBN) recent introduction of measures aimed at assisting banks in mitigating foreign exchange (FX) losses resulting from the volatile FX market.
While it remains unclear if these two events are directly linked, a BDC trader verified the situation and mentioned that the suspension of services is a result of the free fall of the naira against the dollar. Abdullahi Dauran, the chairman of the Association of Bureau De Change Abuja chapter, reportedly issued the directive to halt sales due to unfavorable exchange rates in both the official and parallel markets.
“We want to lower the price of the dollar across the entire national spectrum,” explained another trader regarding the motive behind the decision.
Despite government efforts to enhance liquidity in the FX market, the naira has persistently weakened against the dollar. The official window, known as the Nigerian Autonomous Foreign Exchange Market (NAFEM), saw the naira depreciate to N1,482 against the dollar, surpassing the parallel market value of N1,470.
Aminu Gwadabe, the president of the Association of Bureaux De Change Operators of Nigeria (ABCON), clarified that the suspension of services is not the official stance of his association. He emphasised ongoing engagements with relevant agencies and highlighted that numerous currency traders are not affiliated with ABCON.
