Naira Becoming The Most Unpredictable Currency In The World – BDC Operators
Bureau De Change (BDC) Operators, under the aegis of the Association of Bureau De Change Operators of Nigeria (ABCON), have revealed that the naira is fast becoming the most unpredictable currency in the world.
They noted that the local currency has in recent times been going through an inconsistent journey and has been greatly affected by all kinds of wars ranging from trade, rate as well as speculative attack.
This was disclosed by ABCON President, Aminu Gwadebe, during a chat with newsmen where he admitted that the foreign exchange (forex) market is facing some challenges.
The Nigerian foreign exchange market has been experiencing some high level of volatility with the licensed currency traders complaining of a shortage of forex and accusing the commercial banks of not selling dollars to them.
Gwadebe in his statement said, ‘’The Naira, unfortunately, is suffering an inconsistent journey bedeviled by all kinds of wars ranging from Trade war, rate war and speculative attack and therefore becoming the most unpredictable currency in the world.’’
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The ABCON boss highlighted some of the challenges affecting the forex market including global economic uncertainty, regulatory changes, technology advancements, and market volatility.
Gwadebe noted that economic slowdowns in major economies like the US, Europe, and China have resulted in decreased trade volumes and increased market volatility.
He also stated that the recapitalization policy for the BDCs has given rise to compliance costs for forex brokers and impacted market liquidity.
Recall that BDC operators had attributed the crash of the naira in the foreign exchange market to the huge demand for forex due to the windfall from some contractual payments and releases by some Federal Government agencies.
