Bureau De Change operators in Abuja have announced the suspension of their operations due to the scarcity of dollars, according to a report by the Daily Trust. The Chairman of the association, Abdulahi Dauran, made this announcement on Wednesday, citing the unavailability of dollars as a key factor.
The official exchange rate saw the naira closing at an all-time low of N1,482 against the United States dollar on Tuesday. However, the parallel market maintained stability at N1,450/$.
Dauran pointed to factors such as online business transactions and the influence of cryptocurrency as contributing to the closure of their operations. The shutdown is set to take effect from Thursday, February 1, 2024.
This development coincides with recent efforts by the Central Bank of Nigeria (CBN) to address the nation’s fluctuating exchange rate. The CBN, on Wednesday, directed Deposit Money Banks to sell their excess dollar stock by February 1, 2024. Additionally, the CBN warned against hoarding excess foreign currencies for profit, expressing concerns that some commercial banks may be holding long-term foreign exchange positions to capitalize on volatile exchange rate movements.
The new directive from the CBN includes a set of guidelines aimed at mitigating the risks associated with such practices. The move by the Bureau De Change operators reflects the challenges faced by businesses in the foreign exchange market and the broader economic impact of currency fluctuations.
