Business and Economy

CBN bans sale of foreign exchange to BDCs: says they have become conduit for illicit forex flows and graft – Agwu, C. J

The CBN has ended the sales of foreign exchange to Bureau De Change operators in the country and that it will also no longer process applications for licensing of BDCs

Making the announcment, the CBN Governor, Godwin Emefiele, accused the operators of BDCs of engaging in illicit graft of dollarizing the Nigerian economy and vowed that the bank will henceforth no longer sell dollars to them saying the parallel market has become a conduit for illicit forex flows and graft.

Subsequently, the weekly sales of foreign exchange by the CBN will henceforth go directly to commercial banks.

“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.

“Several international organizations, embassies patronize BDC through illegal forex dealer to fund their institutions,” .

“We will deal ruthlessly with Nigerian banks that deal with illegal BDCs and we will report foreign organizations patronizing them.”

“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.” the CBN Governor added

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