Key Takeaways
- BDCs deny claims of restricted forex exchange
- CBN warns banks against transacting with forex with BDC
- Measures have been taken to repay capital deposits and licensing fees back to affected operators
The Central Bank of Nigeria has cracked down on the Bureau of Currency Exchange (BDC) for illegal foreign exchange transactions. It will stop selling foreign exchange to the operators of the Bureau of Currency Exchange in Nigeria.
CBN President Godwin Emefiele announced this when he addressed the media at the MPC briefing on Tuesday, July 27, 2021. The central bank also confirmed that they would no longer license new BDC businesses and cease all current new licensing processes.
While making these announcements, the governor promised to "relentlessly" deal with Nigerian banks caught in these illegal acts.
It is worth noting that this is not the first time CBN has prohibited the sale of foreign exchange to BDC. In 2016, the Central Bank of Nigeria held a press conference and announced that it would stop selling foreign exchange to the Bureau of Foreign Exchange (BDC) operators.
This decision was made to curb the suspicious behavior of BDC operators. They are not providing services to retail users who need about $5,000 but involving millions of dollars in transactions, which indicates that they may purchase these dollars in an unethical manner.
Do you think the CBN is fair with its strict policy against foreign exchange with the BDCs?
