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Naira vs Dollar: Government Takes Drastic Measures to Address Naira Free Fall: BDCs Shut Down in Abuja

Government Takes Drastic Measures to Address Naira Free Fall: BDCs Shut Down in Abuja

DSS Intervenes as President Tinubu’s Administration Grapples with Naira Crisis

President Bola Tinubu’s government has orchestrated the closure of Bureau De Change (BDC) centres in Nigeria’s capital, Abuja.

The directive allegedly came as a response to Naira’s record low against the dollar on the official market, prompting the government to enlist the Department of State Services (DSS) to take charge.

FMDQ Exchange data disclosed that the naira experienced a historic dip against the dollar, reaching 1,531 during Tuesday’s trading.

The government’s move to shutter BDCs is viewed as an attempt to stabilize the currency and avert further embarrassment.

The DSS has reportedly assumed control of the market, intensifying efforts to curtail the naira’s free fall. Despite these measures, the Lagos market remains open but is reportedly in 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 (BDC) Operators has announced an indefinite closure of their premises starting Thursday.

While Abdulahi Dauran, the chapter’s chairman, attributes the shutdown to a scarcity of US dollars compounded by online banking and cryptocurrency transactions, insider information suggests that the association was compelled to close under government pressure.

The naira’s depreciation, reaching approximately 40% since the beginning of the year, has prompted concerns.

The official exchange rate is gradually converging with the parallel market rate due to foreign currency shortages in Nigeria.

The central bank has issued warnings to lenders regarding potential market manipulation and vowed to sanction any underreporting of financial transactions.

This Article is Fact-Checked. See Policy.

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