Attacks on BDCs will worsen forex crisis, Obi slams FG

The Labour Party presidential candidate in the last general elections, Peter Obi, has slammed the Federal Government over recent reported raids and arrests of Bureau De Change (BDC) operators in the country.

The former Anambra State Governor said the clampdown on the BDCs by government agencies was ill-advised and capable of worsening the forex situation.

He declared this in a post on his X account on Sunday, February 25, 2024.

Obi’s comments come some days after the Economic and Financial Crimes Commission (EFCC) conducted raids against illegal operators of BDC across the country.

However, the Labour Party presidential candidate described the action as a wrong approach to resolving the exchange rate crisis because BDC are not primary suppliers of forex.“The recent reported attacks and disruption of the business activities of Bureaux de Change (BDCs) operators in different urban centres across the country by Government Agencies, are ill-advised and wrongly directed,” Obi said.“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.”“To think that the BDCs are the cause of the declining value of the Naira is a smack on rational economic thinking,” he said.

Obi argued that BDC operators play a role in all economies, including the world’s most developed countries.He stressed the importance for government officials to appropriately comprehend how the modern economy functions and tailor their efforts accordingly.“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,” he added.