Home Business CBN stops sale of forex to BDCs

CBN stops sale of forex to BDCs

by Business News Report

The Central Bank of Nigeria (CBN) said it has discontinued sale of Foreign Exchange (forex) to Bureau de Change (BDC) operators in the country. Mr Godwin Emefiele, the CBN Governor said this while presenting a communique from the apex bank’s Monetary Policy Committee (MPC) meeting in Abuja. Emefiele said that the decision was informed by the unwholesome business practices of the BDCs, which he said had continued to put enormous pressure on the Naira. He said , henceforth, the apex bank would sell forex to deserving Nigerians through the commercial banks.

”The BDCs were regulated to sell a maximum of 5000 dollars per day, but CBN observed that they have since been flouting that regulation and selling millions of dollars per day. The CBN also observed that the BDCs aid illicit financial flows and other financial crimes. The bank has thus, decided to discontinue the sale of forex to the BDCs with immediate effect. We shall, henceforth, channel all forex allocation through the commercial banks,” he said. He urged the commercial banks to ensure that every deserving customer got their forex demand, adding that any bank found circumventing the new system would be sanctioned. Once a customer presents all required documentation to purchase forex, the commercial banks should ensure they get the forex. Stakeholders have been calling on the CBN and its MPC to take urgent steps to halt unending depreciation of the Naira. Recently, a past President of the Chartered Institute of Bankers of Nigeria (CIBN), Mr Okechukwu Unegbu, urged the MPC to focus on policy decisions that would curb rising inflation and stabilise the Naira. 

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