Aminu Gbadabe, President of the Bureau de Change Operators of Nigeria, has asked the Central Bank of Nigeria (CBN) and the federal government to carry the currency dealers along in their plans to stabilize the naira.
Gwadabe stated that achieving a stable, solid, and volatility-free exchange rate in Nigeria will need the complete participation of the Bureaux de Change operators, also known as BDCs, in the retail segment of the foreign exchange market.
BDC operators can provide stability in the currency market
Concerning the challenges facing Nigeria’s Forex market and the naira’s depreciation, Gwadabe stated it requires the BDCs to provide solutions to the current volatility in the exchange rate market.
The BDC dealers’ boss said the continuous devaluation of the naira in both the official and black market is not to the benefit of the BDCs and the local economy, saying that steps should be taken to reverse the fall and strengthen the naira for maximum impact on the economy.
The Naira plunges to its lowest in history
The naira hit N1,100 on Tuesday, October 17, 2023, and plunged to N1,175 per dollar on Thursday, October 19, 2023, in the black market.
The same Tuesday, the official market recorded its worst depreciation of N848 per dollar before strengthening to N790.80 on Wednesday, October 18, 2023.
On Thursday, October 19, the naira appreciated slightly, exchanging for N782 per dollar.
Gwadabe wants CBN to flush out currency speculators
Gwadabe revealed that the several measures by the CBN to plug the exchange rate gaps indicate genuine intentions to stabilize the exchange rate market.
However, he said involving the BDCs in the solution plan would bring the needed results.
According to Gwadabe, the BDC operators are worried about the development of the foreign exchange market. Punch reports that Gwadabe asked the CBN to flush out unlicensed Forex dealers at the center of speculative activities and attract a negative image to the operators.