CBN stops Forex sales to operators of Bureau De Change

The Central Bank of Nigeria (CBN) has stopped Forex sales to operators of Bureau De Change in the country with immediate effect.

The Governor of CBN, Godwin Emefiele, announced this after the Monetary Policy Committee’s two-day meeting in Abuja on Tuesday.

Emefiele, however, said the MPC also retained the Monetary Policy Rate at 11.5 percent at the end of the meeting.

In accordance with him, the Cash Reserve Ratio and Liquidity Ratio at 27.5 percent and 30 percent accordingly were also retained.

He said, “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 percent.

“In summary, MPC voted as follows, one, retain MPR at 11.5 percent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 percent, and retain the Liquidity Ratio at 30 percent.”

On the decision to end the sales of Forex to the BDCs, Emefiele added that the BDCs had defeated their purpose of existence to provide Forex to retail users, but instead, they had become wholesale and illegal dealers.

The CBN Governor said, “We observed that the BDCs have continued to make huge profits while Nigerians suffered in pain.

“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.”