Bureau De Change (BDC) operators have accused banks of hoarding dollars and not supplying to them as directed by the Central Bank of Nigeria (CBN), a situation they claim threatens the stability of the naira.
President, Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, said BDCs are grappling with limited availability of forex, unfavourable offer rates, fewer participating banks, lower margins, and business uncertainties.
According to him, these factors have combined to fuel currency substitution and speculative activities, leading to the weakening of the naira.
The naira recorded a sharp decline in its value in the parallel market, popularly called the black market, exchanging at 1,580/$ on Thursday and Friday, losing 3.5 per cent or N55 compared to 1,525/$ on Wednesday.
At the official foreign exchange (FX) market, the naira depreciated by N43/$ on Friday as the dollar was quoted at 1,542/$ compared to 1,499/$ on Monday.
Data from FMDQ Securities Exchange Limited revealed that the naira depreciated as the dollar was quoted at N1,512.30 as against the previous close of N1,500.80 at the NFEM.
Gwadabe expressed concerns over several constraints affecting BDC operators, warning that these challenges are eroding confidence in the FX market framework.
He urged the CBN to fine-tune its interventions in the retail FX market through BDCs and also called for the approval of the importation of dollar cash by licensed operators and a transparent monitoring mechanism for banks’ dollar sales to BDCs.
“The apex monetary authorities must sustain their magic wands by calibrating interventions in the retail market, granting approval for dollar cash imports to licensed operators, and putting in place a framework for transparent bank dollar sales to BDCs,” he said.
Gwadabe also called on fiscal authorities to sustain efforts in reducing the fiscal deficit, boosting productivity, enhancing forward communication and ensuring effective information flow.
The ABCON president also urged federal and state governments as well as relevant agencies to declare a state of emergency on inflation, stressing that tackling rising prices is critical for sustained economic growth and poverty alleviation.
“Above all, operators must embrace the new reforms and ensure strict compliance to support stability in the foreign exchange market,” he added.
In December 2024, CBN granted BDCs temporary access to the NFEM between December 19, 2024, and January 30, 2025, but later extended it to May 30, 2025.
