CBN halts forex sales to Bureau De Change operators, retains lending rate

 CBN halts forex sales to Bureau De Change operators, retains lending rate

With immediate effect, the Central Bank of Nigeria has halted the sale of foreign currency to Nigeria’s Bureau De Change operators.

The CBN Governor, Godwin Emefiele, made the announcement following a two-day meeting of the Monetary Policy Committee in Abuja on Tuesday.

At the conclusion of the meeting, the MPC kept the Monetary Policy Rate at 11.5 percent.

The Cash Reserve Ratio and Liquidity Ratio were likewise kept at 27.5 per cent and 30 per cent, respectively.

Announcing the committee’s decision, Emefiele said, “The MPC decided to hold all parameters constant. The committee thought by unanimous vote to retain the Monetary Policy Rate at 11.5 per cent.

“In summary, MPC voted as follows, one, retain MPR at 11.5 per cent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 per cent, and retain the Liquidity Ratio at 30 per cent.”

In response to the MPC’s decision to halt forex sales to BDCs, he stated that the MPC was disappointed and concerned that the BDCs had failed to fulfill their original goal of providing forex to retail customers, instead becoming wholesale and illegal dealers. 

He noticed that the BDCs continued to generate large profits while Nigerians suffered. 

He stated that commercial banks would be monitored in order to provide forex for Nigerians’ legitimate purpose. 

“The Central Bank will henceforth discontinue the sale of forex to Bureau de Change operators,” Emefiele said.

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