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Why CBN Clampdown On Bureau De Change Operators, Ban Them From Forex Sales

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The Central Bank of Nigeria on Tuesday wielded the big stick, as it said it had stopped the sales of forex to the Bureau De Change operators in the country with immediate effect.

Governor Godwin Emefiele, announced this at the end of the end of a two-day Monetary Policy Committee meeting in Abuja.

Explaining the reason for the action, Emefiele said that the BDCs had continued to make huge profits while Nigerians suffered in pain.

He declared that the MPC observed with disappointment and concern that the BDCs had defeated the purpose of their existence, which is to provide forex to retail users. Instead, he said that they had become wholesale and illegal dealers.

As an alternative, he said that the country’s commercial banks would be monitored to provide forex for the legitimate use of Nigerians.

“The Central Bank will henceforth discontinue the sale of forex to Bureau de Change operators,” he said.

He announced the MPC also retained the Monetary Policy Rate at 11.5 percent, while also leaving unchanged the Cash Reserve Ratio at 27.5 percent, and Liquidity 30 percent.

Announcing the committee’s decision, Emefiele said, “The MPC made the decision to hold all parameters constant. The committee thought by unanimous vote to retain the Monetary Policy Rate at 11.5 percent.

“In summary, MPC voted as follows, one, retain MPR at 11.5 percent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 per cent; and retain the Liquidity Ratio at 30 percent.”