The Central Bank of Nigeria said it has stopped the sale of forex to the Bureau De Change (BDC) operators in the country with immediate effect.
The apex bank also said it will no longer process applications for BDC licences in the country.
This was announced by the CBN Governor, Godwin Emefiele, on Tuesday, after the Monetary Policy Committee (MPC) two-day meeting in Abuja.
Emefiele said, the MPC noted with disappointment and great concerns that the BDCs had defeated their purpose of existence to provide forex to retail users.
He said that BDCs had become wholesale and illegal dealers, and had continued to make huge profits while Nigerians suffered in pain.
Emefiele said that the CBN weekly sales of foreign exchange will henceforth go directly to commercial banks.
He said the commercial banks would be monitored to provide forex for the legitimate use of Nigerians.
“We are concerned that BDCs have allowed themselves to be used for graft,” Emefiele said.
“The Central Bank will henceforth discontinue the sale of forex to Bureau de Change operators.”
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The MPC also voted to retain the Monetary Policy Rate at 11.5%; retain the Cash Reserve Ratio at 27.5% and to retain the Liquidity Ratio at 30%.
“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%, Emefiele said, while announcing the committee’s decision
“In summary, MPC voted as follows, one, retain MPR at 11.5%; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5%; and retain the Liquidity Ratio at 30%.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.