Home BUSINESS FOREIGN EXCHANGE SALES TO BUREAU DE CHANGE BANNED BY CBN

FOREIGN EXCHANGE SALES TO BUREAU DE CHANGE BANNED BY CBN

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By Aishat Momoh. O.

The Central Bank of Nigeria (CBN) has announced that it will no longer sell foreign currency to BDCs.

Following the bank’s decision to keep its benchmark policy rate, CBN governor Godwin Emefiele announced the restriction on live television.

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The restriction was necessary, said to Emefiele, since the parallel market had become a conduit for illegal FX transactions and corruption.

“We are concerned that BDCs have agreed to be used for grafting,” Emefiele stated.

“This is not a punitive move; rather, it is intended to ensure that the CBN can fulfill its constitutional responsibility of servicing all Nigerians.”

According to the governor of the Central Bank of Nigeria, applications for BDC licenses would no longer be processed in the country.

According to Emefiele, the CBN’s weekly foreign exchange sales will henceforth flow directly to commercial banks.

He stated that the regulator will “deal ruthlessly” with banks that allow illicit forex traders to utilize their platforms, and that the defaulting multinational organizations will be reported to their own regulators.

Banks, according to Emefiele, are expected to sell forex to consumers who produce the requisite documents “quickly” and transparently. All banks must create dedicated tellers for the same purpose right away.

He said that international organizations, including some embassies and donor agencies, were participating in illegal forex operations that hampered the flow of foreign currency into the country.

According to the governor of the Central Bank of Nigeria, the organizations have decided to channel forex through the black market rather than through the legitimate Investors and Exporters (I&E) window, known as Nafex.

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