Business

Clampdown on BDC operators will worsen FX situation–Obi

Published

9 months ago

February 25, 2024

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Peter Obi, former governor of Anambra state, says the reported clampdown on Bureaux De Change (BDCs) operators by government agencies is ill-advised and wrongly directed.

The Economic and Financial Crimes Commission (EFCC) had conducted raids against illegal Bureau De Change (BDC) operators in parts of the country on February 21, 2024.

Obi, in a post on X, said the action will worsen the country’s exchange rate situation and not alleviate the issue.

The presidential candidate of the Labour Party (LP) in the 2023 election, said the BDCs are not the primary suppliers of forex.

“The recent reported attacks and disruption of the business activities of Bureaux de Change (BDCs) operators in different urban centers across the country by Government Agencies, are ill-advised and wrongly directed,” Obi said.

“Rather than solve the problem, the action will further escalate and worsen the exchange rate situation in the country.

“The BDCs are not the primary suppliers of forex nor do they create demand. They only provide a market to sellers and buyers of foreign currency.”

He said the BDC operators are a ubiquitous presence in all economies, including the world’s most developed countries.

“To think that the BDCs are the cause of the declining value of the Naira is a smack on rational economic thinking,” he said.

“The only way to shore up the value of our currency is to move the country from consumption to production, especially export-led production, and fight corruption, which allows unproductive money to pursue the available supply of foreign currency.

“As long as Nigeria remains an unproductive economy and corruption continues unfettered with people in possession of unproductive excess cash, the value of our currency will continue to depreciate.

Obi, therefore, said it is critical that government officials appropriately comprehend how a modern economy functions and direct their efforts accordingly.