CBN stops selling forex to Bureaux-de-Changes operators 

…Retains lending interest rate at 11.5%

The Central Bank of Nigeria (CBN) has announced the stoppage of the sale of foreign exchange to Bureaux-de-Changes, (BDCs), accusing international bodies operating in Nigeria of sabotage.

The CBN governor, Godwin Emefiele, who disclosed this yesterday, shortly after the Monetary Policy Committee (MPC) meeting, accused BDCs of deliberate economic sabotage and misusing the weekly $20,000 allocation to them.

He also said CBN will no longer renew licences of BDCs.

The apex bank also accused international agencies and embassies operating in Nigeria of illegally patronising BDCs.

According to him, international development finance institutions, embassies and others are supposed to patronise the importer and exporter window where there is transparency.

In addition, the CBN governor accused BDCs of dollarisation of the Nigerian economy. Other allegations against BDCs are that: they have become an avalanche of rent seeking operators; their owners owning multiple BDCs; and financing unauthorised transactions.

Henceforth, previous allocation of foreign exchange to BDCs will now be given to banks to sell to customers.

Meanwhile, the apex bank’s Monetary Policy Committee (MPC) also yesterday said it has decided unanimously to keep the Monetary Policy, (MPR), a.k.a lending rate, at 11.5% and all other parameters.

This also was revealed by Emefiele while reading the communiqué at the conclusion of the MPC meeting.  

Among other highlights of the Committee’s decision, was the asymmetric corridor of +100/-700 basis points around the MPR. The Cash Reserve Requirement, (CRR)), was also retained at 27.5%, while Liquidity Ratio was also kept at 30%.

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