Bureau De Change operators have sounded an alarm, highlighting that the depreciation of the naira is prompting some Nigerians to hoard their savings in United States dollars.
Aminu Gwadabe, the National President of the Association of Bureau De Change Operators of Nigeria, emphasized the necessity for liquidity in the forex market. Despite the $2.2 billion released by the African Import-Export Bank, Gwadabe expressed concerns about its adequacy, suggesting that more needs to be done to stimulate the market and curb panic caused by the eroding value of the naira.
Gwadabe also called for a shift in the supply of dollars into the foreign exchange market, emphasizing the importance of immediate action. He advocated for a separation of operation and ownership in transactions, suggesting a review of the Central Bank of Nigeria’s 2020 circular to enhance transparency. Financial analysts noted that Nigerians are buying and holding foreign exchange to meet future financial obligations due to the anticipated devaluation of the naira. The trend includes individuals making strategic decisions, such as borrowing money now to purchase and hold dollars, especially for future expenses like vacations or education abroad.