Saturday, September 18, 2021

CBN bans forex sales to Bureau De Change operators

The CBN Governor, Godwin Emefiele, announced the change following a two-day meeting of the Monetary Policy Committee in Abuja on Tuesday

With immediate effect, the Central Bank of Nigeria has banned the sale of foreign exchange also known as Forex to Nigeria’s Bureau De Change operators.

The CBN Governor, Godwin Emefiele, announced the change following a two-day meeting of the Monetary Policy Committee in Abuja on Tuesday.

He did say, however, that at the end of the meeting, the MPC kept the Monetary Policy Rate at 11.5 percent.

The Cash Reserve Ratio and Liquidity Ratio of 27.5 percent and 30 percent, respectively, were also unchanged, according to him.

According to the CBN governor on the Forex ban to Nigeria’s Bureau De change operators, 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

In accordance with the decision to suspend forex sales to BDCs, Emefiele noted that the BDCs had failed to live up to their initial task of providing currency to retail customers, thus, becoming wholesale and illegitimate dealers.

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.

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