Bureau De Change operators have expressed concern that since the value of the naira has depreciated, some Nigerians are holding their money in US dollars. Aminu Gwadabe, National President of the Association of Bureau De Change Operators of Nigeria (ABCON), argued that the currency market needed to be more liquid.
Gwadabe stated that the $2.2 billion granted by the African Import-Export Bank was insufficient to invigorate the sector. “For now, it’s a difficult situation which is also creating panic in the market because the value of the naira is eroding and because of that, a lot of people prefer to keep their savings in dollars. The market is willing buyers and sellers but, we need to separate operation and ownership because if we say an IMSO should be the one to initiate and terminate a transaction then hope for transparency in the transaction will be defeated. We hereby advise the CBN to review their 2020 circular, in which they agreed or stated that the BDC should be an agent of the International Money Transfer Transaction, so that we can now separate operation and ownership, and with that, it will no longer be the person initiating the fund, as the owner will be the one terminating the fund to the ultimate beneficiary.” he said
According to a financial specialist, Nigerians are buying and holding foreign currency to satisfy future financial responsibilities. He stated that “it’s a no-brainer, let’s think about it; if you look at the path of the naira this year alone, there will be devaluation, and if we look at the level of devaluation so far, those who have dollar needs in the next few months or years, for example, may buy and store it. For example, anybody planning a vacation in August may find it quite beneficial to borrow money now because he will be purchasing dollars, keeping them, and paying interest. I am telling you what Nigerians are thinking.”
