[Spying YOU] CBN Instructs BDC’s To Report Your Forex Deals Using BVN
The Central Bank released a circular Thursday instructing Bureau De Change (BDC’s) that from August 1 2015, all transactions consummated by the BDCs must have a Bank Verification Number of their customers. The CBN also asked BDCs to provide bank verification numbers of their own directors or risk being booted out of the foreign exchange […]
The Central Bank released a circular Thursday instructing Bureau De Change (BDC’s) that from August 1 2015, all transactions consummated by the BDCs must have a Bank Verification Number of their customers.
The CBN also asked BDCs to provide bank verification numbers of their own directors or risk being booted out of the foreign exchange market.
This move is basically a continuation of its strategy of tightening up forex inflows and outflows (capital controls)
The CBN has issued several circulars in recent weeks aimed at ensuring the parallel market continues to be starved of funds.
Nairametrics sees this move as a strategy to ensure the arbitrage created by the wide disparity between the interbank market rate and the parallel market rate is not exploited.
In the past, Nigerian banks have engaged in these activities (otherwise called round-tripping) where banks on behalf of their customers use conduits to purchase money from the interbank market and then sell at a higher spread at the black market
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