CBN stops forex sales to Bureau De Change operators | Learn Why

Naira Continues To Lose Value As CBN Faces Tough Choices
Naira Continues To Lose Value As CBN Faces Tough Choices

The Central Bank of Nigeria (CBN) has stopped the sales of forex (FX) to the Bureau De Change (BDCs) operators in the country with immediate effect. The apex bank Governor, Godwin Emefiele, disclosed this after the Monetary Policy Committee two-day meeting in Abuja on Tuesday.

Why the ban on forex sales?

Speaking on the the decision to stop forex sales to the BDCs, Emefiele stated that MPC noted with disappointment and great concerns that the BDCs had defeated their purpose of existence to provide forex to retail user, but instead, they had become wholesale and illegal dealers (conduit for illicit forex flows and graft). The apex bank Governor added that it will also no longer process applications for BDC licences in the country.

Brand Spur gathered that weekly sales of foreign exchange by the CBN will henceforth go directly to commercial banks, the CBN governor, Godwin Emefiele, said Tuesday in a live TV broadcast after announcing that the bank has retained its benchmark policy rate.

The BDCs, he observed had continued to make huge profits while Nigerians suffered in pain.

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CBN Governor, Godwin Emefiele |

He said international bodies, including some embassies and donor agencies, have been complicit in illegal forex transactions that have hindered the flow of foreign exchange into the country.

He said the organisations have chosen to channel forex through the black market than use the official Investors and Exporters (I&E) window, called Nafex.

Mr Emefiele said the regulator will “deal ruthlessly” with banks allowing illegal forex dealers to use their platforms and will report the defaulting international organisations to their regulators.

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“We will deal with them ruthlessly and we will report the international bodies,” he said.

Accordingly, Mr Emefiele said banks are mandated to “immediately” and transparently sell forex to customers who present the required documents. All banks are to immeidtaely create dedicated tellers for the same purpose.”