CBN bans sales of forex to BDCs

The Central Bank of Nigeria said it had ended the sales of Foreign Exchange (forex) to Bureau Du Change (BDC) operators.

The CBN stated that the parallel market had become a conduit for illicit forex flows and graft.

The bank said it would also no longer process applications for BDC licences in the country.

Weekly sales of foreign exchange by the CBN will henceforth go directly to commercial banks, the CBN governor, Godwin Emefiele, said Tuesday in a live TV broadcast after announcing that the bank had retained its benchmark policy rate.

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“We are concerned that BDCs have allowed themselves to be used for graft,” Mr Emefiele was quoted to have said 8n a report by the Premium Times.

He said international bodies, including some embassies and donor agencies, had been complicit in illegal forex transactions that had hindered the flow of foreign exchange into the country.

He said the organisations had chosen to channel forex through the black market than use the official Investors and Exporters (I&E) window, called Nafex.

Mr Emefiele said the regulator would “deal ruthlessly” with banks allowing illegal forex dealers to use their platforms and would report the defaulting international organisations to their regulators.

“We will deal with them ruthlessly and we will report the international bodies,” he said.

▪︎Sales to Nigerians

Accordingly, Mr Emefiele said banks were mandated to “immediately and transparently sell forex to customers who present the required documents.

” All banks are to immeidtaely create dedicated tellers for the same purpose.

“Customers not attended to by the banks are to report to the CBN through a toll free number: 0700 22 55 226 or email: cbd@cbn.gov.ng

“This measure is not punitive on anyone, but it is to ensure the CBN is able to carry out its legitimate mandate of serving all Nigerians,” Mr Emefiele said.