CBN Stops Sale Of FX To BDCs

The Central Bank of Nigeria says it has ended the sales of forex
to Bureau Du Change operators, saying the parallel market has
become a conduit for illicit forex flows and graft.

The bank said it will 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
has retained its benchmark policy rate.

“We are concerned that BDCs have allowed themselves to be used
for graft,” Mr Emefiele said,.

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

He said the organisations have 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 will “deal ruthlessly” with banks
allowing illegal forex dealers to use their platforms and will
report the defaulting international organisations to their
regulators.

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

Accordingly, Mr Emefiele said banks are 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.

Cusromers 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.

The Central Bank of Nigeria says it has ended the sales of forex
to Bureau Du Change operators, saying the parallel market has
become a conduit for illicit forex flows and graft.

The bank said it will 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
has retained its benchmark policy rate.

“We are concerned that BDCs have allowed themselves to be used
for graft,” Mr Emefiele said,.

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

He said the organisations have 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 will “deal ruthlessly” with banks
allowing illegal forex dealers to use their platforms and will
report the defaulting international organisations to their
regulators.

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

Accordingly, Mr Emefiele said banks are 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.

Cusromers 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.