Depreciating naira: Clampdown on BDCs ‘ll worsen situation — PETER OBI

The Presidential Candidate of the Labour Party in the 2023 general election, Peter Obi has described the arrest of Bureau de Change operators as well as disruption of their business by government agencies as primitive and escapist.

He advised government agencies involved to desist because the BDCs aren’t the root cause of fluctuations in the Foreign exchange market neither are they responsible for the fall of the Naira.

Obi said in his X handle on Sunday, that the action is primitive goes to show a poor understanding of the problems.

The LP presidential candidate wrote,  “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.

“They are part and parcel of every economy and can be found even in the developed economies of the world.

“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.

“It’s important therefore that government authorities properly understand the workings of a modern economy and channel their efforts accordingly, and stop ridiculing the nation in the eyes of global economies.”