The Central Bank of Nigeria (CBN) has stopped the sales of forex to the Bureau De Change operators in the country. This is in a swift reaction to the current lending rate which favours the operators while Nigerians suffer the pains.
The CBN Governor, Godwin Emefiele, gave the hint after the Monetary Policy Committee (MPC) two-day meeting held in Abuja on Tuesday. The committee also retained the Monetary Policy Rate at 11.5 per cent, the Cash Reserve Ratio at 27.5 per cent while the Liquidity Ratio stands at 30 per cent.
According to Emefiele, “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.”
The decision to stop forex sales to the BDCs, according to the CBN governor was that the BDCs had defeated their purpose of existence to provide forex to retail users, but instead, they had become wholesale and illegal dealers. Investigations also revealed that BDC operators, Therefore, it was of no use.
He said the 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,” Emefiele said.
While many Nigerians welcomed the development, a business analyst, Egbo Felix noted that it's not yet time to celebrate. He stated, "This is a great development. But the CBN has a lot of work to do to prevent the commercial banks from derailing the whole thing by sending their allocations to the black market like they have been doing."©Standard Gazette, 2021. Unauthorized use and/or duplication of this material without express and written permission from this site’s publisher is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Standard Gazette with appropriate and specific direction to the original content.