As Naira Crosses N1,500, BDC Operators Shut Down Business, Give Reasons

As Naira Crosses N1,500, BDC Operators Shut Down Business, Give Reasons

  • The value of the naira continues its massive depreciation against the US dollar in the foreign exchange market
  • This is happening amid low supply in the market, and the situation has also forced BDC operators in Abuja to close their businesses
  • On the other hand, the CBN has promised to deal with forex dealers who are taking advantage of the market

Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

Association of Bureau De Change (BDC) operators Abuja chapter has announced the closure of their business premises indefinitely from today, Thursday, February 1, 2024.

This was disclosed by Abdulahi Dauran, the chairman of the association, on Wednesday, January 1, 2024.

Naira to dollar exchange rate
BDC operators close operation Photo credit: Anderson Ros Photography Inc
Source: Getty Images

Explaining the closure to journalists, Dauran said the scarcity of US Dollars was responsible for their decision.

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Senate summons CBN governor, Cardoso over fall of naira

He added that online banking transactions and cryptocurrency were behind the shortage of dollars.

CBN clears dollar debt

Legit.ng, in an earlier report, revealed that the CBN cleared the verified backlog of foreign exchange claims owed to foreign airlines.

The apex bank expects the development to ease the pressure on the naira, which fell significantly on Wednesday to a record low.

Naira to dollar exchange rate

In the official market, data from FMDQ Securities showed that the closing rate at the Nigeria Autonomous Foreign Exchange window (NAFEX) reached as high as N1,509.00 against the US dollar.

This marks the highest level at which the naira has been exchanged in the official foreign exchange market.

However, the official closing rate for the day stands at N1,455.59.

Read also

“It is not falling”: Nigerians react as Naira exchanges at N1,500/$, Pounds, Euro set new rate

In the unofficial market, data from Naira Rates indicates that on Thursday, one dollar was selling for N1,520 on the street.

Tinubu's govt sets exchange rate target

Earlier, Legit.ng reported that the federal government expressed optimism about the naira exchange rate in 2024.

Ben Akabueze, the DG of the Budget Office, also said the exchange rate target of 2024 could be achieved.

The naira in 2023 recorded its worst performance in the official and unofficial foreign exchange market.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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