Tuesday , December 7 2021
CBN to Supply Forex to Banks Only, Bans Sales Of Dollars to Bureau De Change Operators

CBN to Supply Forex to Banks Only, Bans Sales Of Dollars to Bureau De Change Operators

The Central Bank of Nigeria, CBN will henceforth sell dollars and other foreign currencies directly to commercial banks, which have been mandated to sell to Nigerians.

The regulator, CBN says it has ended the sales of forex to Bureau De Change (BDC) operators and as such ban the sale of dollars to them.

Godwin Emiefele, governor of the bank, announced the ban at a press briefing held after a meeting of the Monetary Policy Committee of the bank, on Tuesday, saying the parallel market has become a conduit for illicit forex flows and graft.

The bank further noted that it will no longer process applications for BDC licences in the country.

Weekly sales of foreign exchange by the CBN will henceforth go directly to commercial banks, the CBN governor, Godwin Emefiele, said Tuesday in a live TV broadcast after announcing that the bank has retained its benchmark policy rate.

“We are concerned that BDCs have allowed themselves to be used for the graft,” Mr Emefiele said.

Emefiele disclosed that the apex bank had to make this move because of the suspicious activities of BDC operators and their utter disregard for CBN exchange rate policies.

He expressed disgust at the weening greed of BDC operators seeking to make abnormal gains at great risk to the country’s financial system.

He listed several offences committed by BDC operators which include subversion of the CBN’s cashless policy, Dollarization of the Economy, prevailing ownership of several BDC by the same owners to get multiple FX and ‘regrettably,’ international organisation and embassy patronage of illegal forex dealers.

ALSO READ: CBN Urges Customers to Disregard Damaging Reports, Reiterates Banks’ Financial Resilience, Safety

The MPC also expressed confidence in the directive adding that it was a step in the right direction.

He said international bodies, including some embassies and donor agencies, have been complicit in illegal forex transactions that have hindered the flow of foreign exchange into the country.

He said the organisations have chosen to channel forex through the black market than use the official Investors and Exporters (I&E) window, called NAFEX.

Mr Emefiele said the regulator will “deal ruthlessly” with banks allowing illegal forex dealers to use their platforms and will report the defaulting international organisations to their regulators.

“We will deal with them ruthlessly and we will report the international bodies,” he said.

Accordingly, Mr Emefiele said banks are mandated to “immediately” and transparently sell forex to customers who present the required documents. All banks are to immediately create dedicated tellers for the same purpose.

Customers not attended to by the banks are to report to the CBN through a toll-free number: 0700 22 55 226 or email: cbd@cbn.gov.ng.

“This measure is not punitive on anyone, but it is to ensure the CBN can carry out its legitimate mandate of serving all Nigerians,” Mr Emefiele said.







CBN, Dollars, BDC operators




About Bukola Olanrewaju

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