The Central Bank of Nigeria (CBN) has banned the sale of foreign exchange to Bureau De Change (BDC) operators in the country.
Godwin Emiefele, CBN governor, made the announcement on Tuesday at a press briefing, which held after a meeting of the Monetary Policy Committee (MPC) of the bank.
Emefiele said the N5. 7 billion allocated to BDCs has become unsustainable as $20,000 is allocated to over 5,500 BDCs, amounting to $110million per week.
He stated that the BDC operators have become a channel for illegal financial flows.
The CBN governor also said the apex bank will no longer continue registration of new BDCs, adding that the current allocation will be channelled to commercial banks.
According to him, the MPC also observed the abuse of CBN regulations by BDC operators, as well as the practice of manipulating the bank’s policy as a strategy for increasing profits.
Consequently, Emefiele stated that the MPC has decided that the CBN should “re-channel forex sales to commercial banks to meet PTA, BTA needs of customers”.
“Commercial banks to dedicate teller points in every branch for sale of forex to customers. Customers to report banks who fail to sell forex to them despite meeting requirements,” he said.
Furthermore, the CBN promised to come down hard on commercial banks found to have connived with foreign embassies, missions and institutions who have conducted their forex businesses illegally and in flagrant abuse of local regulations.