EFCC Arrests BDC Operators Amid Naira’s Devaluation to 1,416/$
Written by Deborah Oyinloye on May 8, 2024
In a bid to curb currency speculation and stabilize the Nigerian naira, the Economic and Financial Crimes Commission (EFCC) reportedly apprehended several Bureau De Change (BDC) operators at Wuse Zone 4 market in an operation on Tuesday. The arrest follows a surge in the exchange rate, with the naira trading at 1,416 against the US dollar, reflecting a concerning 4.4% depreciation.
Eyewitnesses recount that the EFCC operatives faced resistance during the operation, resulting in gunfire exchanges and damage to their vehicles. Traders, expressing frustration, highlighted the perceived frequency of arrests and alleged extortion practices by law enforcement agencies.
Amidst the turmoil, market participants voice concerns over the naira’s fluctuating value, with one trader expressing uncertainty about future exchange rate trends. Notably, the naira’s free fall persists despite recent EFCC crackdowns on currency speculators and BDC operators.
Reflecting on market dynamics, traders note a correlation between price fluctuations and supply-demand dynamics, with scarcity often following price hikes as traders anticipate further depreciation.
Official market data reveals a stark depreciation, with the naira declining to 1,416/$ from 1,354/$ recorded the previous day. The intraday high rose to 1,445, underscoring heightened volatility, while trading volume surged to $160.77 million, reflecting heightened market activity amidst the currency’s instability.
Despite regulatory efforts, including recent arrests and interventions, the naira’s vulnerability to external pressures underscores ongoing challenges in maintaining exchange rate stability, posing significant economic risks.
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Author: Deborah Oyinloye
With an interest in media, Deborah aims to impart the lives of people positively.
