Real Reason CBN Banned Sale of FX To BDCs

Posted on July 27, 2021
‘They’ve turned into money laundering agents’ — CBN bans sale of FX to BDCs

The Central Bank of Nigeria (CBN) on Tuesday said it has stopped sale of foreign exchange (FX) to Bureau De Change (BDCs) operators in the country.

Mr. Godwin Emefiele, governor of the apex bank, announced this at the end of the Monetary Policy Committee meeting in Abuja on Tuesday.

Emefiele said the apex bank received about 5,000 applications every month for BDC registration, adding that the operators are making efforts to dollarise the Nigerian economy.

The CBN governor said BDC operators have become a conduit for illegal financial flows working with corrupt people to conduct money laundering in Nigeria.

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

Emefiele added that there is evidence of prevailing ownership of several BDCs by the same promoters to procure multiple FX from the central bank.

“Several international organisations, embassies patronise BDC through illegal forex dealer to fund their institutions,” he added.

“We will deal ruthlessly with Nigerian banks that deal with illegal BDCs and we will report foreign organisations patronising them.”

He said the CBN will henceforth channel weekly allocations of dollar sales to commercial banks to meet legitimate FX demands.

He also mandated banks to sell forex to every customer.

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

CYRIACUS IZUEKWE A 53-year-old man has been arraigned before a Lagos Magistrate Court over... Continue
Renowned Ijaw stakeholder and academic, Hon. Wisdom Oniekpar Ikuli, has called for greater recognition... Continue
SAM OMATSEYE  While some partisans and economic novices fret over Tinubu’s economic policies, a... Continue
CYRIACUS IZUEKWE Police at Area ‘M’ Command, Idimu, have arraigned one Tajudeen Umaru before... Continue
Dr Chima Matthew Amadi has challenged women in Ahiazu Mbaise to look beyond the... Continue
The President General of the Orashi National Congress, ONC, Ambassador Emeni Ibe, JP, AP,... Continue
CYRIACUS IZUEKWE A 34-year-old man, Uzokwe Franklyn Izu, was arraigned before the Ojo Magistrate... Continue
In one of the most unpredictable turns of the season, eight housemates Yusuf, Araga,... Continue
‎United Nigeria Airlines has pledged N20 million to sponsor the prestigious annual Chinua Achebe... Continue
Tegbe Foundation has concluded its Empowerment Initiative tagged #JTstrikesDiamond with a colorful Closing Ceremony... Continue

UBA


Access Bank

Twitter

Sponsored