Benin Trans Border Traders, Okada Riders Shun Naira For Business Transactions
LAGOS FEBRUARY 16TH (NEWSRANGERS)-The Naira has suffered another setback as trans-border businessmen and women who hitherto used to transact their businesses in Naira and other currencies have stopped accepting the currency as payment for business transactions.
The traders claim that using the Naira to transact their businesses has become counterproductive following its continued depreciation, adding that they lose money when they use Naira to transact their businesses.
Although, there was a lull in business activities at the border town and some markets in Benin republic, checks within Cotonou revealed that most of the Bureau De Change, have stopped displaying the Nigerian currency, a departure from the usual practice.
Even transporters and bike riders in Benin Republic otherwise known as Okada in Nigeria, declined payment in Naira saying that by the time they go back to convert Naira to CFA, they would have lost some fraction of their earnings.
A bike rider, Ibrahim Yakubu, who took our correspondent from Seme border into ‘Misebo’ market (about 45 kilometers from the border) refused to accept Naira and insisted on collecting his payment in CFA.
Yakubu said that the Naira previously had more value than the CFA adding that it was easily accepted as means of payment for goods and services.
He explained that right now the reverse is the case as the CFA is more than 50 percent stronger in terms of value than the Naira, hence the non-acceptance of the Nigerian currency for any business transaction.
A money changer, Taiye Ekiti blamed the development on the United States Dollar adding that cost of Dollar was the reason for the depreciation of the Naira adding that they as Bureau De Change operators are equally as helpless as other businesspeople.
“When the Dollar goes up, Naira and other currencies will lose their value. When you bring your N1,000 Naira currency, the equivalent is CFA400. And it has not stopped depreciating; it could get lower than the current level,” he said.
“The currency market fluctuates from time to time, as at last week it was CFA450 to N1,000 but today it is N1,000 to CFA400 and we do not know where this will lead to because it could further depreciate.
A Nigerian trader who deals in fairly used clothing, Mr. Achi Collins said that most traders do not accepts Naira anymore saying, “that is how much the Naira has lost value over time.”
Collins also said that most traders would tell their customers to change their money to CFA before they can accept it as payment for goods.
He disclosed that around that border town of Seme, there are few traders who accept Naira for payment, noting that inside the cities of Benin, it is not acceptable because of the value when compared to the strength of the CFA.
“The exchange rate is the reason for the situation, the CFA currently has more value than the Naira, CFA1,000 is equal to N2,360, difference is so much that we do not accept it anymore.
“If you want to buy something here you will go and change your Naira to CFA before you buy whatever you want.
Mouyon Seveho, a trader said that they still do not know what has led to the loss of value of the Naira adding that before now most businesspeople kept their monies in Naira.
Sweet Crude
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Posted by News Rangers
on Feb 16 2024. Filed under Business, International, National.
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