CBN Governor, Godwin Emefiele has banned the sale of forex to Bureau operators in Nigeria. This was announced at the last Monetary Policy Committee Briefing which was held yesterday. He also announced that no new BDC operators will be licensed going forward.
The news met with shock and confusion was reached to help curb illegal forex trading in the country and as such any Nigerian caught in such will be dealt with mercilessly.
The governor noted that Nigeria remains the only country globally that allows for a Central Bank to sell foreign exchange directly to Bureau Operators, and instead has reaped market instability as a result.
All the enlisted problems Emefiele disclosed have put a lot of strain on the apex bank. Subject matter experts have suggested that the move may temporarily drive further inflation due to reduced access to foreign exchange.
Also, there are many speculations on where importers will now get funded and the ease of implementation if the banks are the next resort.
Also, going forward, the existing BDC’s in the country will be expected to stick to the original intent of catering to retail users in need of no more than $5000.