Bureau De Change in Abuja shut down over dollar scarcity

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Due to the shortage of dollars, Bureau De Change (BDC) operators in Abuja have closed their businesses.

This information comes from Mallam Abdullahi Dauran, the chairman of the Association of Bureau De Change (BDCs), who addressed the issue in Abuja on Wednesday.

Dauran attributed the decision to the rise of online business transactions and cryptocurrency, announcing that the closure of BDCs would be implemented starting from Thursday, February 1, 2024.

This development coincides with the Central Bank of Nigeria’s (CBN) directive for Deposit Money Banks (DMBs) to liquidate their surplus dollar stock by February 1, 2024, as part of efforts to stabilize the nation’s volatile exchange rate.

In a recent circular issued on Wednesday, the apex bank also cautioned lenders against stockpiling excess foreign currencies for profit.

“The Central Bank of Nigeria has noted with concern the growth in foreign currency exposures of banks through their Net Open Position (NOP). This has created an incentive for banks to hold excess long foreign currency positions, which exposes banks to foreign exchange and other risks,” the circular signed by the Director, Trade and Exchange, CBN, Dr. Hassan Mahmud, and representative of the Director, Banking Supervision, CBN, Mrs. Rita Sike.