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Breaking: CBN stops forex sales to Bureau De Change operators, retains lending rate

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CBN Governor
CBN Governor, Godwin Emefiele, during the Monetary Policy Committee two-day meeting

The Central Bank of Nigeria (CBN) today, Tuesday, July 27, stopped the sales of forex to the Bureau De Change operators in the country with immediate effect.

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

Techeconomy.ng can report that the MPC has retained the Monetary Policy Rate at 11.5 per cent also retained the Cash Reserve Ratio and Liquidity Ratio at 27.5 per cent and 30 per cent respectively at the end of the meeting.

In his words, Emefiele said: “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 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.”

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Commenting on the decision to stop forex sales to the BDCs, the CBN governor explained that the MPC has raised great concerns that the BDCs had defeated their purpose of existence to provide forex to retail user, but instead, they had become wholesale and illegal dealers.

He added that the BDCs continued to make huge profits while Nigerians suffered in pain, noting that commercial banks would be monitored to provide forex for the legitimate use of Nigerians.

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

 

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