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Business News of Tuesday, 27 July 2021

Source: www.thisdaylive.com

CBN suspends FOREX allocation to BDCs

CBN governor, Mr Godwin Emefiele CBN governor, Mr Godwin Emefiele

The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, Tuesday announced the stoppage of foreign exchange allocation to Bureau De Change (BDC) operators in the country.

He also said the CBN had suspended further processing of BDCs application for FOREX henceforth as well as stopped additional licensing of operators.
He said the BDCs had abandoned the primary duties to engage in illicit transactions among other failings.

All FOREX allocations are now to be conducted by the deposit money banks, Emefiele said.

The CBN also resolved to retain Monetary Policy Rate (MPR), otherwise known as the interest rate at 11.5 per cent.

The CBN Governor, Mr Godwin Emefiele, after the two-day monthly Monetary Policy Committee meeting, said the committee also resolved to maintain the asymmetric corridor of +100/-700 basis points around the MPR.

The apex bank also left the Cash Reserve Ratio at 27.5 per cent and Liquidity Ratio at 30 per cent.

The MPR is the rate at which the CBN lends to commercial banks and often determines the cost of borrowing in the economy.