Abuja: Bureau De Change Shut Down Operations Over Dollar Scarcity

... as CBN cautions lenders against hoarding excess foreign currency for financial advantage.

Operators of Bureau De Change (BDC) in Abuja are shutting their doors due to the scarcity of dollars. This information was made public by the chairman of the association of BDCs, Mallam Abdullahi Dauran who spoke in Abuja on Wednesday. The shutdown of the BDCs will begin on Thursday, February 1, 2024, according to Dauran, who also connected the move to cryptocurrency and internet business transactions.

As part of efforts to stabilise the country's unstable currency rate, the Central Bank of Nigeria (CBN) has directed Deposit Money Banks (DMBs) to liquidate their surplus dollar stock by February 1, 2024, at the latest. In a circular released on Wednesday, the apex bank also cautioned lenders against hoarding excess foreign currency for financial advantage.

“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,” reads the circular signed by the Director, Trade and Exchange, CBN, Dr. Hassan Mahmud, and representative of the Director, Banking Supervision, CBN, Mrs. Rita Sike.

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