February 25, 2024

Clampdown on BDC operators’ll worsen FX crisis – Peter Obi

2023: What else can Peter Obi do to win?

Mr Peter Obi

The presidential candidate of the Labour Party, Peter Obi, said the reported clampdown on Bureau De Change (BDCs) operators by government agencies would worsen the country’s exchange rate crisis.

Obi stated this in a statement via his verified X handle on Sunday.

The former Anambra State governor described the move as as ill-advised and wrongly directed, saying the BDCs are not the primary suppliers of forex.

He said, “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.

“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.”

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

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

“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.”

According to him, it is critical that government officials appropriately comprehend how a modern economy functions and direct their efforts accordingly.

Recall that the Economic and Financial Crimes Commission (EFCC) recently conducted raids against illegal Bureau De Change (BDC) operators in parts of the country.