The CBN Governor, Godwin Emefiele revealed on Tuesday, July 27th that the Apex bank will no longer be selling the US Dollars to the various Bureau De Change (BDCs) across the country. The Bank will now sell to commercial banks instead.
Emefiele further went on to say that the apex bank had to make this move because of the suspicious activities of BDC operators and their utter disregard for CBN exchange rate policies.
He said he was disgusted at the level of greed of BDC operators seeking to make abnormal gains at great risk to the country's financial system.
He also went ahead to list several offences committed by BDC operators which includes subversion of the CBN’s cashless policy, Dollarization of the Economy, prevailing ownership of several BDC by the same owners in order to get multiple FX and ‘regrettably,’ international organisation and embassy patronage of illegal forex dealers.
The decision was made during the briefing at the Monetary Policy Committee meeting on Tuesday, July 28th 2021 where the interest rate decision was left unchanged at 11.5%.
The MPC also expressed confidence in the directive adding that it was a step in the right direction.
What Is The Implication Of These Decisions To The Naira?
Banning Dollar sales to BDCs and leaving the interest rates unchanged will only amount to one thing... The further fall of the Naira both at the official and black markets. Prior to the decisions, the Dollar exchanged at ₦411.5 at the official window and ₦504 at the black market respectively.
As at the time of making this post, the Dollar exchanged at ₦505 at the Lagos parallel market.