This was disclosed by
operators who preferred to remain anonymous.
“The ban has been a rude shock
to all operators, including the executive of ABCON, as none of us was expecting
such directive at a time the Naira has not been faring well.
“No doubt, the effect will be on our currency. Already, the exchange rate as at today is around N525/$1 or more depending on the area,” one of the respondents said.
All efforts to get the reaction of ABCON proved abortive, as its President, Dr Aminu Gwadabe, did not not pick calls or respond to text messages.
The CBN had on
Tuesday, banned the licensing of new BDC operators and processing of their
application for forex across the country.
This disclosure was
made by the CBN governor, Godwin Emefiele, while reading the communique after
the 2-day Monetary Policy Committee (MPC) meeting on Tuesday, July 27, 2021.
According to Emefiele,
CBN receives about 574 license applications from BDCs every month adding that
there are currently 5,500 licensed BDC operators across the country.
He stated, “In particular, we have noted with disappointment and great
concern that our Bureau De Change operators have abandoned the origin objective
for their establishment, which was to serve retail end users who need $5,000 or
less. Instead, they have become wholesale dealers, illegally in foreign
exchange to the tune of millions of dollars per transaction.”
“Despite the fact, that Nigeria
is the only country in the world today where a central bank sells dollars
directly to the Bureau De Change operators, Nigeria Bureaus De Change segment
have not reciprocated the bank’s gesture to help maintain price stability in
that market.”
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