CBN Cancels N2.3 Trillion Forex Sales To BDCs

The Central Bank of Nigeria (CBN), on Tuesday, announced the cessation of forex sales to Bureau De Change (BDCs) operators.

CBN Governor, Godwin Emefiele, who disclosed the new policy after the July 2021, Monetary Policy Committee (MPC) meeting in Abuja, said the apex bank was funneling $5.7 billion (about N2.346 trillion) annually through the BDCs.

He said the $5.7bn allocated to BDCs has become unsustainable as $20,000 is allocated to over 5,500 BDCs in the country, amounting to $110 million per week.

Economists and financial experts interviewed by Daily Trust expressed mixed feelings about the new policy and its immediate and long term implications.

They predicted a shock that will further shot up the dollar rates at the parallel market, which will stabilise in the long run. They also blamed the CBN for the downside of the expunged practice.

Emefiele also said the CBN will no longer continue registration of new BDCs as subsequent forex will be channelled through commercial banks.

The CBN governor said as part of the new forex sales policy, all commercial bank branches will create a separate desk for the purpose.

“The BDCs were regulated to sell a maximum of 5,000 dollars per day, but CBN observed that they have since been flouting that regulation and selling millions of dollars per day.

“The CBN also observed that the BDCs aid illicit financial flows and other financial crimes.  The bank has thus decided to discontinue the forex sales to BDCs with immediate effect.

“We shall, henceforth, channel all forex allocation through the commercial banks,” he said.

The apex bank head also urged banks to ensure that every deserving customer got their forex demand adding that any bank found circumventing the new system would be sanctioned.

“Once a customer presents all required documentation to purchase forex, the commercial banks should ensure they get the forex. Any customer that is denied should contact the CBN on 0700385526 or through the email-”

In another development, during the MPC press briefing, the CBN governor said the apex bank has continued to rev up interventions in the real sector to spur economic growth.

The CBN governor said the MPC meeting retained all existing monetary rates.

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