CBN Bans Sale Of Forex To BDCs, Suspends Issuance Of Licence

CBN has banned the sale of forex to BDCs.

Newsone reports that the Central Bank of Nigeria (CBN), Nigeria’s apex bank, on Tuesday, July 27, blocked future foreign exchange transactions with bureau de change operatives.

This online news platform understands that the CBN will also suspend the issuance of new licences to money changers across the country with immediate effect, Governor Godwin Emefiele said in a press briefing on Tuesday afternoon.

Newsone reports that the announcement by the CBN is coming as the bank intensifies efforts to mitigate the further decline of the country’s economy and the national currency.

Bureau de change operators has long been a major black market, providing exchange rate support to those unable to formally access foreign currencies directly from the CBN. The suspension of their ability to source foreign exchange from the CBN could have a significant impact on the country’s economy and bring naira under further pressure.

Newsone reports that the Federal Government led by President Muhammadu Buhari has faced criticism for mismanaging the country’s economy after the naira tumbled by widespread margin against the United States dollar and other major international currencies. A dollar was about 180 to naira when the administration assumed power in 2015, but it now exchanges for about 411.50 to naira, and about 510 to naira at parallel markets.