CBN Forecloses Chances Of Reopening CBD’s 

Analysts give update on BDC's survival strategies after CBN ban - Vanguard  News

Yemisi Izuora

The Central Bank of Nigeria, CBN, has shut its door against any negotiations with Bureau De Change operators, whose operations it said has been canceled.

They are not coming back, says the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) at the end of its 138th meeting on Friday.

It insisted that the door has been permanently shut against Bureau De Change operators (BDCs) in the country and that no amount of pressure will make it rescind its decision.

The CBN Governor and MPC Chairman, Mr Godwin Emefiele made the declaration and also vowed to take on Aboki FX for its alleged illicit activities in the Nigerian forex market.

Emefiele also disclosed that the committee retained all policy parameters, leaving the Monetary Policy Rate (MPR) at 11.5 per cent; asymmetric corridor of +100/-700 basis points around the MPR; the CRR at 27.5 per cent; and Liquidity Ratio at 30 per cent.

Emefiele revealed that the MPC expressed concerns over the blooming insecurity in the country, calling for its arrest because it was capable of retarding the economic recovery momentum.

On forex, Emefiele said the CBN will continue to restrict the activities of illegal forex dealers, even as he advised forex seekers to explore the Investors and Export (I and E) window to ensure transparency and stability in the market, even as he also advised banks to adhere strictly to CBN guidelines on forex sales.

According to him, “We will continue to sanitise the forex market and eliminate illegal dealers. Those who wish to procure Forex should go to the banks. If you have genuine businesses, the bank can expand the limit of $5,000. We can give that approval once we’ve been informed.

“My view is that the only exchange window is the I and E. We expect everyone to go there and you will be attended to. I do not hope to recognise any other rate in the market.

“Nigeria remains the only Central Bank that dips its hands into its reserve and sell to BDCs in an attempt to stabilize forex market. It has stopped and stopped for good. US, UK etc do not do that. “Go to your banks for everything from fees, medicals, etc. We can expand the limit. You want to sell dollars, go to your bank. Call any bank not selling to you, we will step in but with fake visas and travel tickets, they won’t sell to you. If you cancel it your ticket, you should send the forex back to the bank. If you don’t, the banks will alert and pursue you and give your details to EFCC. They will pursue you and get the money back”, Emefiele explained.

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