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Breaking: CBN stops issuance of new licenses to BDCs, gives reason

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The Central Bank of Nigeria (CBN) has vowed to stop the licensing of new Bureau De Change (BDC) operators across the country.

The CBN Governor, Godwin Emefiele, made the vow while reading the communique after the 2-day Monetary Policy Committee (MPC) meeting on Tuesday, July 27, 2021.

Emefiele said that the CBN receives about 574 license applications from BDCs every month adding that there are currently 5,500 licensed BDC operators across the country.

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.” 

Techeconomy.ng also reported that the banking regulator had 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.

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.

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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