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

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

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

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

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

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

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

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

But he said the CBN must compel the Commercial Banks to comply with the 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 the 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 called on Nigerians to report any commercial bank that failed to issue them foreign currencies even after they had tendered necessary documentations. (NAN)