The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has said that there is no going back on the decision to ban the sale of forex to Bureaus de Change (BDCs).
Emefiele disclosed this to journalists after the announcement that the apex bank was maintaining the 11.5 percent monetary policy rate (MPR).
He said that the regulatory body had done a self-reflection that led to its decision to ban the sale of forex to BDCs.
He asserted, “The only exchange rate market is the Investors and Exporters window, which is the market that we expect everybody that wants to buy or sell dollars should use.
“I am sorry to say: I do not recognise any other market. We’ve asked ourselves at the CBN, why did we have to wait so long?
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“CBN remained the only central bank in the world to dip its hands into our commonwealth mad pack dollars to BDCs all in an effort to stabilise the exchange rate.
“For me, it’s a wrong decision. It has stopped for good. The Bank of England, or U.S. Federal Reserves do not sell dollars to BDCs even though they exist.
“It beats my imagination that tended to support illegality of people who are involved in graft and corruption.”
Why the CBN Ended Forex Supply To BDCs
In July 2021, the CBN announced an end to the sale of foreign exchange to BDCs, noting that many of them serve as channels through which illegal funds flow.
It added that it would also stop issuing new licences to BDCs for the continuation of their operations.
Emefiele had said, “We are concerned that BDCs have allowed themselves to be used for graft. They have turned themselves away from their objectives.”
The announcement sparked conversations across the country, creating a divide in different corners, while the naira slumped against the dollar 24 hours after.
Experts worry that the value of the hobbling naira would further take a hit following the ban.
Establishing a new forex channel for Nigerians, the CBN had noted that it would sell to commercial banks, and in turn, banks will sell to customers with legal transactions.
Banks were also instructed by the CBN to create teller points for the dedicated purpose of forex sale.
