As the fortunes of the naira continues to dip, Labour Party presidential candidate in the 2023 elections, Peter Obi said the recent move by President Bola Tinubu to restrict the Bureau du Change in Nigeria was a disservice to the country.
Mr. Obi said on his X handle Sunday that the move will worsen the economic situation in the country.
“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,” 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.”
He said the BDC operators are a ubiquitous presence in all economies, including the world’s most developed countries.
“To think that the BDCs are the cause of the declining value of the Naira is a smack on rational economic thinking,” he said.
“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.”
According to him, it is critical that government officials appropriately comprehend how a modern economy functions and direct their efforts accordingly.
Last week the Economic and Financial Crimes Commission (EFCC) raided some illegal Bureau De Change (BDC) operators in parts of the country in a bid to cut the excesses of the operators.
Free-Falling