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CBN Suspends Forex Sale to BDCs Indefinitely

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The Central Bank of Nigeria (CBN) has suspended the sale of foreign exchange to Bureau De Change (BDC) operators nationwide indefinitely.

This decision followed a request made by the Association of Bureau De Change Operators of Nigeria (ABCON) to the authority to hold off on its members’ weekly bidding.

The body had made the request to the apex bank through a correspondence titled Letter of recommendation to Declare Market Holiday on Our Weekly Bidding Pending the Reopening of Our Nation’s Borders and the Control of COVID-19.

The Director, Trade and Exchange, CBN, Mr A.S. Jibrin in a circular on Thursday night explained that the decision was based on recommendations by association members to suspend foreign exchange sales until further notice.

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It was also noted that the operations of BDC operators across locations pose serious health risks due to gatherings.

The circular further read, “Furthermore, the Government’s directive to restrict gatherings to not more than twenty (20) persons is aimed at reducing a person to person contact and curb the transmission of the Covid-19 virus and that means that the concentration of the BDC encashers at disbursement centres would pose health challenges.”

ABCON had before now promised that in line with recent challenges facing the economy, it would be transparent in its trading rate and not deal an unfair hand to people who need foreign currency.

And following the restriction placed on travel in order to curtail spread of the COVID-19 around the world, demand for foreign currency has reduced.

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