- “No profit dey again for selling dollars.”,BDC Operators .
Abuja’s Bureau De’Change (BDC) operators expressed frustration as the official exchange rate closely approached their rates, raising concerns about the sustainability of their businesses. In response, the BDC union instructed its members to shut down operations on Thursday, February 1.
Mallam Ibrahim, situated in Wuse Zone 4, informed the Nation that their union’s decision stemmed from the realization that they were unable to compete with the official rate. Speaking in pidgin English, Mallam Ibrahim explained, “The Naira dey go up. The official rate don fall so tey e be like say na the same thing we dey offer here. No profit dey again for selling dollars.”
The closure, which lasted only a few hours, was interrupted when officials from the Economic and Financial Crimes Commission (EFCC) raided Wuse Zone 4, arresting both sellers and buyers of Forex. Although the streets around the Forex market seemed deserted, transactions persisted behind closed doors.
Later in the afternoon, Ibrahim mentioned that they had resumed business in their offices but lamented the crashing rates compared to the previous day. By 4:30 pm on Thursday, the dollar was exchanging for N1,450, according to Ibrahim.
Supporting Ibrahim’s account, another trader named Nura revealed he was conducting business within banking halls. Nura explained that his clients sent dollars to his account, and he reciprocated by transferring the Naira equivalent back to them.
The narrowing gap in Forex rates, influenced by various economic factors, significantly diminished potential profit margins for black market operators, making their activities less lucrative. The abrupt closure of the traders could pose substantial implications for the Nigerian foreign exchange market.
While many Nigerians face limited access to official FX channels, the black market has traditionally served as an alternative source, albeit at a premium. The sudden shutdown may pose challenges for individuals and businesses reliant on these unofficial channels.
On a positive note, this development could be interpreted as a sign of success for the Central Bank of Nigeria’s recent efforts to stabilize the foreign exchange market. The diminishing gap between official and black market rates suggests growing confidence in the official market, potentially reducing the demand for alternative channels.
The situation remains fluid and could evolve rapidly. Official statements from the Central Bank of Nigeria (CBN) and the Association of Bureau De’Change Operators of Nigeria (ABCON) are awaited, and the long-term impact of the traders’ closure remains unclear.
