Connect with us

Headlines

Clampdown on BDCs ill-advised, will worsen FX problem, Peter Obi warns

Published

on

Peter Obi decries worsening insecurity, says abduction of school children unacceptable

 

Mr. Peter Obi, the Presidential Candidate of the Labour Party in the 2023 general election, has warned that the clampdown on Bureau de Change (BDC) operators will worsen Nigeria’s foreign exchange crisis.

Obi who described the clampdown as primitive and escapist way to tackle falling value of the naira, noted that the BDS are not the primary source of dollar, neither do they create demand.

The former Anambra State governor advised government agencies involved to desist because the BDCs aren’t the root cause of fluctuations in the Foriegn exchange market neither are they responsible for the fall of the Naira.

News continues after this Advertisement

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

Obi 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.”

News continues after this Advertisement
News continues after this Advertisement