Nigeria’s central bank governor, Godwin Emefiele has informed the public that the central bank would discontinue the sale of dollars to Bureau De Change (BDC) and would only supply forex to banks.
This was disclosed at the Monetary Policy Committee (MPC) meeting on Tuesday, 27th July 2021.
Emefiele informed the public that this action was taken as a result of the apex bank’s misgivens about BDC operators and their disregard for CBN exchange rate policies.
The governor expressed his distaste for the wanton greed displayed by BDC operators as they sought to make abnormal gains, putting the financial system at risk in the process.
Some of the shortcomings noticed by the CBN was the huge rent-seeking by operators who are only interested in wide margins, dollarization of the Nigerian economy, subversion of the CBN’s cashless policy, prevailing ownership of several BDC by the same owners in order to get multiple FX and ‘regrettably,’ international organisation and embassy patronage of illegal forex dealers.
These were the reasons that led to the decision made by the CBN. The MPC expressed confidence that banks are doing the right thing in managing the country’s economic situation by increasing access to credit to the real sectors of the economy.
The governor threatened to crack down on banks still dealing illegally with unauthorized forex traders and urged the international organisations to participate in the I&E window.