The Central Bank of Nigeria, CBN, has announced ban on sales of forex to Bureau Du Change operators, citing illicit flows and graft in the parallel market as reasons.
The bank’s governor, Godwin Emefiele in a live broadcast on Tuesday, said CBN will no longer process applications for BDC licenses in the country, explaining that weekly sales of forex would henceforth go directly to commercial banks.
“We are concerned that BDCs have allowed themselves to be used for graft,” the bank boss said.
Emefiele alleged that international bodies, including some embassies and donor agencies, were complicit in illegal forex transactions that had hindered the flow of forex into the country.
According to him, organisations had chosen to channel forex through the black market than use the official Investors and Exporters (I&E) window, called Nafex.
He said the regulator will “deal ruthlessly” with banks that allow illegal forex dealers to use their platforms and will report the defaulting international organisations to their regulators.
“We will deal with them ruthlessly and we will report the international bodies,” he said.
Emefiele said banks are mandated to “immediately” and transparently sell forex to customers who present the required documents, adding that all banks are to immediately create dedicated tellers for the same purpose.
“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,” he said.
