The Central Bank of Nigeria on Tuesday declared the stoppage of deals of unfamiliar monetary forms to Bureau De Change administrators.
Talking after the Monetary Policy Committee meeting, the CBN lead representative, Godwin Emefiele, said the bank will likewise not issue new licenses to BDCs.
He said the alleged bootleg market had become a conductor for illegal forex streams and unite. Being a significant market for Nigerians executing organizations and voyaging abroad, the CBN supplies the BDCs billions of dollars yearly.
The boycott doesn’t stop the activities of the BDCs; it implies administrators should source forex from different providers — not the national bank. The CBN will sell straightforwardly consequently to commerical banks, from where clients who have authentic and material exchanges will actually want to purchase.
Sourcing dollars and other forex from a third source (counting purchasing from Nigerians who get unfamiliar monetary forms) implies the BDCs may probably be selling at higher rate.
After the declaration Tuesday, Naira reacted with a decrease against the dollar at both the authority and underground markets. In the city, Naira shut down at 505.00 per $1, a 0.20% depreciation from N504.00 it exchanged on Monday.
At the official Nafex market, it closed at N411.67, from N411.50 the previous day.
Some Nigerians have complained that the CBN move may further devalue the local currency(Naira), but experts say the policy is necessary to curtail the illegal activities at the BDCs.
An economist expert, Paul Alaje, said the rule, if well implemented, will ultimately be beneficial although the immediate impact may be negative for the Naira.“The problem is that dollar itself will now be relatively scarce in that market because CBN intervention will not be coming in,” he said.“
And you know when the dollar is scarce the price will go up eventually there will be a seizure.”
Citizens who think bag of rice is expensive should expect for more rise in the price of rice.
ADVICE : Buy dollar! There’s an estimate that a dollar would be sold at N900 by December, 2021.