CBN stops sale of forex to BDC operators

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The Central Bank of Nigeria (CBN) (CBN) has stopped the weekly sale of foreign exchange (FX) to Bureau De Change (BDCs) operators in the country.

This was announced by the governor of the apex bank, Godwin Emefiele at the end of the monetary policy committee (MPC) meeting in Abuja on Tuesday.

He said the MPC took the decision to protect the local currency and halt the attempt by BDC operators to dollarize the Nigerian economy.

Emefiele said the apex bank receives about 5,000 applications every month for BDC registration, adding that they have become a conduit for illegal financial flows working with corrupt people to conduct money laundering in Nigeria.Advertisement

“They have turned themselves away from their objectives,” he said.

“They are now agents that facilitate graft and corruption in the country.

“We cannot continue with the bad practices that are happening at the BDC market.”

Emefiele added that there is evidence of prevailing ownership of several BDCs by the same promoters to procure multiple FX from the central bank.

“Several international organisations, embassies patronise BDC through illegal forex dealer to fund their institutions,” he added.

“We will deal ruthlessly with Nigerian banks that deal with illegal BDCs and we will report foreign organisations patronising them.”

He said the CBN will henceforth channel weekly allocations of dollar sales to commercial banks to meet legitimate FX demands.

He also mandated banks to sell forex to every customer.

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