Abuja BDC operators shut down operations over dollar scarcity

The Bureau De Change operators said online banking and cryptocurrency are responsible for the dollar scarcity.

Abuja BDC operators shut down operations over dollar scarcity

The Abuja chapter of the Bureau De Change (BDC) operators has announced the closure of their business premises from February 1, 2024, until further notice.

According to a statement by the chairman of the association, Abdulahi Lauran, on Wednesday, January 31, 2024, the decision was influenced by the scarcity of dollars in its area of operations.

Meanwhile, the Bureau De Change operators blamed the dollar scarcity on online business transactions and cryptocurrency penetration.

The Nigerian currency has been on a free fall since the decision of President Bola Tinubu to float the naira as part of his reforms in the financial sector.

Due to the continuing plummeting value of the naira, the demand for the dollar has been on the increase, as some Nigerians tried to hedge against the currency devaluation.

However, the largest chunk of these transactions don't go through the conventional systems, with a plethora of online platforms providing these services.

Also, the recent lifting of the ban placed on cryptocurrency assets in the country by the Central Bank of Nigeria (CBN) has provided citizens with an alternative means to preserve their money.

Consequently, if the BDC operators' claims are anything to go by, these factors have led to less demand for the physical dollar, which they heavily rely upon to carry out their daily transactions.

JUST LIBERATION NEWS reports that the naira sunk to its lowest, reaching an alarming record low of ?1,4900 per dollar on the official market on Tuesday, January 30, 2024.

Concerned by the development, the Senate on Wednesday summoned the CBN governor, Olayemi Cardoso, to appear before it to explain the state of the economy and the free flow of naira at the forex market.