High FX Rate: BDC Operators Suspend Service in Abuja
1 min read
Reports disclose that Currency traders, popularly known as Bureau De Change (BDC) operators, have suspended their services in Abuja, Nigeria’s capital territory.
The withdrawal of service comes barely 24 hours after the Central Bank of Nigeria (CBN) unveiled new measures to help banks prevent foreign exchange (FX) losses due to the volatility of the FX market.
Although it is unclear if the two events are connected, a BDC trader, who confirmed the development, said they stopped working due to the free fall of the naira against the dollar.
It was also learnt that Abdulahi Dauran, the chairman of the Association of Bureau De Change Abuja chapter, issued the directive to stop sales as the exchange rates in both the official and parallel markets have become unfavourable.
Despite the government efforts to increase liquidity in the FX market, the naira has continued to weaken to unprecedented lows against the greenback.
The local currency depreciated to N1,482 against the dollar at the official window, also known as the Nigerian Autonomous Foreign Exchange Market (NAFEM), on Tuesday.
The rate, for the second time in nine years, surpassed the value of the parallel market which was quoted at N1,470 at the close of the market on the same day.
About The Author
