Groups Laud CBN’s Ban on Forex Sale to BDC Operators

Groups Laud CBN’s Ban on Forex Sale to BDC Operators

By Udora Orizu

Ethnic Youth Leaders and African Centre for Justice and Human Rights (ACJHR) have lauded the decision of the Central Bank of Nigeria (CBN) under the leadership of its Governor, Godwin Emefiele, to stop the sale of forex to Bureau De Change (BDCs) operators in the country.

Emefiele had on 27th July after a meeting with Monetary Policy Committee said that the Bank will immediately stop the weekly sale of dollars to BDC operators, and would henceforth channel the allocations to commercial banks to meet legitimate foreign exchange demands.

Speaking on behalf of the groups at a press briefing in Abuja, the President Middle Belt Youth Forum, Comrade Meliga Godwin, while describing the initiative as a welcome development, said the operators were making excessive profits from the allocations they get weekly from the CBN to the detriment of the people.

He also claimed that the operators have become agents that facilitate corruption in Nigeria and the Apex bank would not be expected to tolerate this.

He explained that the ban did not stop the operations of the BDCs; but only means that operators will have to source forex from other suppliers but not the Central Bank.

He said, ”It would interest you to know that a few owners registered and promoted multiple BDCs not because they needed expansion of their businesses, but because they took benefit of the weekly $20, 000 which the bank allocated to each of the registered BDCs hence these operators accessed the allocation through multiple companies and used same to aid and launder money. It must be accepted that this ban on sale of Dollars to the BDCs was necessitated by their dubious and unwholesome practices, adding that the operators have gone beyond their primary role of being retail dealers of FX to wholesale dealers.

“It is because of these illicit businesses that BDCs had risen from a mere 74 BDCs in 2005 to 2,786 BDCs in 2016 and about 5500 today. In addition, the CBN receives close to 150 new applications for BDC licenses every month. This increase in operators are only interested in wider margins and profits from the forex market regardless of prevailing rates in the market. A few wicked businessmen are ripping off the system and now want to make it look like they are the victims. Nigerians cannot allow them pull wool over our eyes.

“BDCs have turned themselves away from their objectives. They are now agents that facilitate graft and corruption in the country. The country cannot continue with the bad practices that are happening at the BDC market.”

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