CBN ends forex sales to Bureau De Change operators

The Central Bank of Nigeria (CBN)has stopped the sales of freign exchange (forex) to the Bureau De Change operators in the country with immediate effect.

The CBN Governor, Godwin Emefiele, disclosed this after the Monetary Policy Committee’s two-day meeting in Abuja on Tuesday.

The apex bank, however, retained the Monetary Policy Rate (MPR) at 11.5 per cent at the end of the meeting.

According to Emefiele, the Cash Reserve Ratio (CRR)and Liquidity Ratio at 27.5 per cent and 30 per cent respectively were also retained.

“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,” he said.

On the decision to stop forex sales to the BDCs, Emefiele said the BDCs had defeated their purpose of existence to provide forex to retail users, but instead, they had become wholesale and illegal 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,” Emefiele added.