In a move aimed at salvaging the depreciating value of the naira, President Bola Tinubu’s government has instructed the closure of Bureau De Change (BDC) centers in Abuja, the capital of Nigeria.
The government reportedly engaged the Department of State Services (DSS) to enforce the shutdown, emphasizing the need to restore stability to the naira and protect its reputation.
As a consequence, the DSS has taken control of the market, reflecting the government’s urgent efforts to address the currency crisis and mitigate potential embarrassment.
On Tuesday, FMDQ Exchange data revealed a record low for the naira against the dollar on the official market. Intra-day trades showed the currency dropping to 1,531 naira to the dollar, while the parallel market quoted 1,460 naira.
The official market closed at 1,482.57 naira, according to FMDQ, marking a concerning 40% depreciation since the beginning of the year.
The situation escalated after the FMDQ OTC Securities Exchange revised its closing rates methodology, leading to increased volatility.
The central bank has expressed concern over transaction underreporting by lenders, warning against misinformation and market manipulation, threatening sanctions for non-compliance.
Sources revealed that BDC centers in Abuja were compelled to close due to the naira’s free fall, with the DSS taking charge of the market.
The move is seen as an attempt to save face amidst growing embarrassment for the government.
While the Lagos market remains open, reports indicate a state of panic with the exchange rate reaching N1,520 for a dollar on Wednesday.
The Abuja chapter of the Association of Bureau De Change Operators confirmed the indefinite closure of their businesses from Thursday.
Chairman Abdulahi Dauran attributed the decision to the scarcity of US dollars, further exacerbated by online banking and cryptocurrency transactions, although indications suggest the association had no choice but to comply with the government’s directive.
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