WHY WE CLOSED SHOP, BY BDC OPERATORS. (PHOTO).

 Why we closed shop, by BDC operators

Bureau De’Change (BDC) operators in Abuja said they were frustrated by the rate at which the official exchange rate was catching up to their rate.

Worried that they would run out of business, the BDC union instructed its members to close shop on Thursday, February 1.

Mallam Ibrahim at Wuse Zone 4 told the Nation that their union decided out of frustration when it became obvious that they couldn’t compete with the official rate.

Speaking in pidgin English, Mallam Ibrahim said: “The Naira just de go up. The official rate has fallen so much that it’s almost the same as what we offer here. There’s no profit in selling dollars anymore.”

“The shop closure only lasted for a few hours. As officials of the Economic and Financial Crimes Commission (EFCC) stormed Wuse Zone 4 to arrest both sellers and buyers of Forex.

While the streets around the Forex market appeared deserted, transactions continued behind closed doors.

When contacted again in the afternoon, Ibrahim said they had all gone into their offices to do business but lamented that the rate had crashed compared to what it was yesterday. As at 4:30 pm on Thursday, the dollar was going for N1,450 Ibrahim said.

Corroborating what Ibrahim had said, another trader, Nura said he was operating from within the banking halls.

According to him, his clients send dollars to his account and he in turn transfers the Naira equivalent back to them.

The narrowing Forex rate gap driven by several economic factors, has significantly reduced the potential profit margin for black market operators, rendering their activities less lucrative.

The traders’ closure could have significant implications for the Nigerian foreign exchange market. 

While access to official channels for FX remains limited for many Nigerians, the black market has historically served as an alternative source, albeit at a premium.

Their sudden shutdown could create challenges for individuals and businesses reliant on these unofficial channels.

However, the development could also be seen as a positive sign for the CBN’s recent efforts to stabilize the foreign exchange market.

The narrowing gap between official and black market rates suggests increased confidence in the official market, potentially reducing demand for alternative channels.

The situation is fluid and could evolve rapidly. The CBN and ABCON are yet to issue official statements, and the long-term impact of the traders’ closure remains unclear.