CBN ends sale of forex to bureau de change operators

Central Bank of Nigeria Governor, Godwin Emefiele
CBN Governor, Godwin Emefiele

The Central Bank of Nigeria has ended the sale of forex to bureau de change operators in the country with immediate effect, the bank’s governor Godwin Emefiele announced Tuesday.

Mr Emefiele announced the bank’s bold move following the monetary policy committee two-day meeting in Abuja. The committee retained monetary policy rate at 11.5 per cent.

It also retained the cash reserve ratio and liquidity ratio at 27.5 per cent and 30 per cent respectively.

“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 per cent.

“In summary, MPC voted as follows, one, retain MPR at 11.5 per cent; 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 per cent,” Emefiele said.

Speaking on the decision to stop forex sales to the BDCs, he said the 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.

“The Central Bank will henceforth discontinue the sale of forex to bureau de change operators,” Emefiele said.

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

He said commercial banks would be monitored to provide forex for the legitimate use of Nigerians.