Central Bank of Nigeria’s (CBN) prohibition on foreign exchange sales to Bureau De Change (BDC) operators, according to financial analysts, will prevent round-tripping.
They made the remarks in a separate interview with the Nigerian News Agency (NAN) in Lagos on Friday, in response to the outcome of the July Monetary Policy Committee (MPC) meeting.
They claimed that the supreme bank’s decision was firm and would minimize the country’s ongoing foreign exchange abuse.
Former President of the Chartered Institute of Bankers of Nigeria (CIBN), Mazi Okechukwu Unegbu, said the apex bank’s foreign exchange limit on BDC operators should be applauded.
“ Withholding foreign exchange from BDCs is a smart decision to prevent further exploitation.
He pointed out that no monetary authority would condone the racketeering that takes place in BDCs and would not intervene.
Unegbu went on to say that allowing commercial banks to sell foreign exchange was a big deal since commercial banks were more dependable and easier to control.
“Unlike BDC operators, who are not structured like banks, their number has exploded to over 4,000 people.
Also speaking, President Progressive Shareholders Association of Nigeria, Mr Boniface Okezie, said the apex bank’s action of withholding foreign exchange to the BDCs was laudable.
Okezie, however, said that the apex bank would have punished erring operators instead of a total ban.
“Although it will have been better if the CBN punishes some of the guilty BDC operators rather than total discontinuation of dollar sales to them.
He stated that some BDC operators were quite honest and adhered to the regulator’s roles while doing their activities.