By Milcah Tanimu
Members of the Association of Bureau De Change Operators of Nigeria (ABCON) have refuted claims that they are responsible for the ongoing depreciation of the naira, amidst increased scrutiny from the Economic and Financial Crimes Commission (EFCC).
The EFCC’s crackdown on Bureau De Change (BDC) operators has intensified following the Central Bank of Nigeria’s (CBN) efforts to curb the decline of the naira’s value, particularly since the fourth quarter of 2023.
Recent raids conducted by EFCC operatives in Abuja, Lagos, Kano, and Port Harcourt have targeted BDC traders, as the government seeks to address the naira’s weakening against the dollar.
Despite these actions, a senior official from ABCON has attributed the naira’s depreciation to insufficient dollar allocations from the CBN, rather than the actions of BDC operators. The official highlighted market volatility and a significant drop in daily turnover as indicators of tightening liquidity, which has contributed to the naira’s decline.
Speaking anonymously due to concerns about repercussions from authorities, the ABCON official criticized the lack of focus on the Autonomous Foreign Exchange Market (AFEM) window, suggesting that improved management could help stabilize the market.
The official emphasized that BDC operators should not be blamed for the fluctuations in exchange rates, pointing to the lack of adequate supply as a primary factor driving the depreciation.
The naira’s recent drop to N1,520.4 against the US dollar underscores the challenges facing the foreign exchange market, with May recording notably lower daily turnover compared to previous months. This trend indicates tightening liquidity, further exacerbating the currency’s depreciation.
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