Quest for the Truth and Justice

Dollar scarcity threatens Bureau De Change operation in Kwara

Posted by on Jan 28th, 2016 and filed under Business, News, Top Stories. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

The-list-strongest-currencies-in-the-worldBy Matthew Denis
Scarcity of Dollar is threatening Bureau de Change business in Kwara State, Business Pilot can report.
The non-availability of the forex is taking its toll on the parallel market, with most operators in the state threatening to close shop.
Some of the BDC outlets within Ilorin metropolis visited by our reporter on Tuesday were under lock and key.
A cross section of the operators who spoke to this medium, said the business climate since CBN stopped funding BDCs has been unfavourable,
One of the operators, Mr. Abdullahi Chindo decried the unavailability of forex in the open market and commercial banks.
“We are finding it difficult to access the dollar, though some of us have suppliers who import the dollar from neigbouring countries, the situation is really affecting our economy adversely.
“The handwriting is on the wall; many BDC operators in the state will be chased out of business because of the prevailing situation.”
He said most operators in the state buy the dollar from customers at the rate N303/dollar and resell at N305/dollar therefore having profit margin.
Similarly, Alhaji Hassan Maina lamented that most operators in the state have run out of stock.
“We are only relying on the customers but the best measure is for the CBN to lift the ban of sale of forex to BDCs.
Maina added, “The CBN cannot justify its actions because we control less than five per cent of the forex market value. Whatever imperfection is in the market, it is a wrong approach for the CBN to say it will no longer fund BDCs.
He stressed that the BDC is a market driven by demand and supply, adding that by reducing the dollar supply to the market, the naira will fall against the dollar within the next few months, unless the policy is reversed.

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