Don lauds CBN’s decision to stop forex supply to BDCs

 Prof. Uchechi Ogbuagu, Department of Economics, University of Calabar, has commended Central Bank of Nigeria (CBN) for stopping supply of forex to Bureau de Change (BDC) operators.

Ogbuagu gave commendation in an interview with News Agency of Nigeria (NAN) on Thursday in Calabar.

professor said decision of CBN was the proper way for forex to be distributed in the economy.

He, however, wondered if CBN would be able to effectively implement decision.

“We must be truthful to ourselves, BDCs in past have encouraged money laundering and many of them do not even trade with foreign currencies they receive from the CBN but store them for speculations.

“These are some of reasons why I think it is a good decision to stop giving BDCs forex,” he said.

According to him, many people are sceptical about ability of Commercial Banks to effectively make foreign currencies available to those who need them.

But he said CBN must compel Commercial Banks to comply with national monetary policy.

“CBN must take control of effective monetary policy regulations.

“When this is done, BDC operators will do their jobs as retailers and not take over role of the banks and engage in fraudulent activities,” he said.

NAN reports that the CBN had earlier declared that forex would henceforth be acquired through the commercial banks.

It threatened to sanction any bank that colluded with the BDCs in currency trading.

The apex bank also on Nigerians to report any commercial bank that failed to issue them foreign currencies even after they had tendered necessary documentations. (NAN)