Abuja BDC operators shut down operations over dollar scarcity

Bureau De Change operators have announced shut down of operations in Abuja as a result of unavailability of dollars, reports the Daily Trust.

This was announced by the association’s Chairman, Abdulahi Dauran, on Wednesday.

The naira closed at an all-time low of N1,482 against the United States dollar on the official window on Tuesday while on the parallel market, it remained stable at N1,450/$.

Dauran attributed the closure to online business transactions and cryptocurrency.

He said the closure of business would take effect from Thursday, February 1, 2024.

The development is coming amid fresh moves by the Central Bank of Nigeria to stabilise the nation’s volatile exchange rate.

The apex bank on Wednesday ordered Deposit Money Banks to sell their excess dollar stock by February 1, 2024.

The CBN also warned lenders against hoarding excess foreign currencies for profit.

According to officials, the bank believes some commercial banks hold long-term foreign exchange positions to enable them to profit from the volatile movements of exchange rates.

The new directive also introduced a set of guidelines aimed at reducing the risks associated with these practices.