DO YOU AGREE? CBN Should Be Blamed For Naira Depreciation – BDC Operators

Bureau De Change, BDC, operators has aportion blamed to the Central Bank of Nigeria’s insufficient allocation of foreign currency for the continued depreciation of the naira in the foreign exchange market.

An official of the Association of the Bureau De Change, stated that at the parallel market section, the naira dropped to N1,520 on Tuesday from N1,500 the previous day, according to Mr Mistila Dayyabu, BDC operator in Wuse Zone 4 Abuja.

Similarly, FMDQ data showed that the naira closed at N1,520.40 per dollar on Tuesday from N1,478.11.

Speaking further on naira depreciation in the past weeks, the ABCON official said the volume of FX allocation to members was discouragingly low.

According to him, the paucity in FX allocation has pushed BDC operators to source the currency at a higher cost thereby resulting in the naira depreciation.

He said:

“The volume and frequency of dollar supplies from the CBN are discouragingly low. We often have to source dollars independently.

“We haven’t received more than $30 to $40 million total in the last three months,” he lamented, describing the pace of allocations as “snail-speed.”

“We often ignore fundamental economic issues in this country and chase after less relevant matters. Such strategies inevitably lead to errors.

“The volume and frequency of dollar supplies from the CBN are discouragingly low. We often have to source dollars independently.

“We haven’t received more than $30 to $40 million in the last three months.

“We often ignore fundamental economic issues in this country and chase after less relevant matters. Such strategies inevitably lead to errors.”

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