{"id":58411,"date":"2021-07-28T09:02:09","date_gmt":"2021-07-28T09:02:09","guid":{"rendered":"https:\/\/www.cryptocabaret.com\/?p=58411"},"modified":"2021-07-28T09:02:09","modified_gmt":"2021-07-28T09:02:09","slug":"nigerian-central-bank-stops-forex-sales-to-bureaus-de-change-operators-accused-of-feeding-black-market","status":"publish","type":"post","link":"https:\/\/www.cryptocabaret.com\/?p=58411","title":{"rendered":"Nigerian Central Bank Stops Forex Sales to Bureaus de Change \u2014 Operators Accused of Feeding Black Market"},"content":{"rendered":"<p><img decoding=\"async\" width=\"696\" height=\"392\" src=\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2021\/07\/nigeria-2.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" loading=\"lazy\"><\/p>\n<p><strong>The Central Bank of Nigeria (CBN) recently announced the abrupt end to sales and outsourcing of foreign exchange to Bureau de Change (BDC) operators after accusing them of failing to stick to their core mandate. Instead of providing forex to retail users, BDCs are believed to be supplying the scarce resource to so-called \u201cillegal\u201d dealers. <\/strong><\/p>\n<h2>BDC Operators Accused of Fueling Parallel Market Activity<\/h2>\n<p>The illegal dealers, in turn, avail the foreign exchange to clients at parallel market exchange rates. For instance, while the CBN insists that the naira\u2019s exchange rate against the USD is currently pegged at around N411 for every dollar, <a href=\"https:\/\/abokifx.com\/home\">parallel market<\/a> dealers use an exchange rate of N500 for every dollar.<\/p>\n<p>Explaining the rationale behind CBN\u2019s decision to end forex sales to BDCs, governor Godwin Emefiele <a href=\"https:\/\/guardian.ng\/news\/cbn-bans-sales-of-foreign-exchange-to-bureau-de-change-operators\/\">suggested<\/a> that operators had been profiteering at the expense of suffering Nigerians. Therefore, the CBN\u2019s intervention is aimed at putting an end to this practice. Emefiele explained:<\/p>\n<blockquote>\n<p>This measure is not punitive on anyone, but it is to ensure the CBN is able to carry out its legitimate mandate of serving all Nigerians.<\/p>\n<\/blockquote>\n<h2>Commercial Banks Warned<\/h2>\n<p>As a consequence of Emefiele\u2019s announcement, the CBN \u201cwill no longer process applications for BDC licences in the country.\u201d On the other hand, the CBN\u2019s weekly sales of foreign exchange will now \u201cgo directly to commercial banks.\u201d<\/p>\n<p><!-- growjs zone placement 31 --> <ins> <ins class=\"growjs-placement\"><\/ins> <\/ins> <!-- end of growjs zone placement --> <\/p>\n<p>In the meantime, Emefiele also used his speech, which was delivered following the conclusion of the CBN monetary policy committee meeting, to remind commercial banks that the central bank will \u201cdeal ruthlessly\u201d with any institution that allows \u201cillegal forex dealers to use their platforms.\u201d<\/p>\n<p>Emefiele also blasted international bodies, including embassies and donor agencies for being complicit in what he calls \u201cillegal forex transactions that have hindered the flow of foreign exchange into the country.\u201d<\/p>\n<p><em><strong>Do you think ending forex sales to Bureaus de Change alone will help to stop the flow of money to the parallel market? Tell us what you think in the comments section below.<\/strong><\/em><\/p>\n<p class=\"wpematico_credit\"><small>Powered by <a href=\"http:\/\/www.wpematico.com\" target=\"_blank\" rel=\"noopener\">WPeMatico<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Central Bank of Nigeria (CBN) recently announced the abrupt end to sales and outsourcing of foreign exchange to Bureau de Change (BDC) operators after accusing them of failing to stick to their core mandate. Instead of providing forex to retail users, BDCs are believed to be supplying the scarce resource to so-called \u201cillegal\u201d dealers. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":58412,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[309],"tags":[],"class_list":["post-58411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts\/58411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=58411"}],"version-history":[{"count":0,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts\/58411\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/media\/58412"}],"wp:attachment":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=58411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=58411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=58411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}