Bureau De Change operators in Abuja have decided to cease operations due to the unavailability of dollars, as reported by the Daily Trust. The association’s Chairman, Abdulahi Dauran, made the announcement on Wednesday.
On Tuesday, the naira hit an all-time low of N1,500 against the US dollar in the official window, while maintaining stability at N1,500/$ on the parallel market. Dauran cited online business transactions and cryptocurrency as contributing factors to the closure.
This business shutdown is scheduled to commence on Thursday, February 1, 2024.
Economic Implication
The economic implications of this decision are significant, potentially affecting businesses reliant on BDC services and foreign exchange transactions. It could lead to increased pressure on the already volatile exchange rate and impact investor confidence. As the Central Bank of Nigeria seeks to stabilize the exchange rate, the closure highlights the challenges faced by local businesses in accessing foreign currency, potentially hindering economic activities.
This development coincides with the Central Bank of Nigeria’s recent efforts to stabilize the nation’s exchange rate. On Wednesday, the apex bank directed Deposit Money Banks to sell their excess dollar stock by February 1, 2024. The CBN also cautioned lenders against hoarding excess foreign currencies for profit, introducing guidelines to mitigate the risks associated with such practices.
