CBN Exposes Cartel Invading Nigerian Forex Market

The Central Bank of Nigeria (CBN) yesterday, July 29, 2015, at a seminar organised for financial journalists in Calabar, Cross Rivers, exposed the cartel invading the Nigerian forex exchange market.

Moses Tule, director of monetary policy of the CBN revealed that Ghanaian businessmen; others from African countries and Central African countries often transact in the Nigerian Bureaux de Change for forex.

CBN Governor, Godwin Emefiele.

CBN Governor, Godwin Emefiele.

According to him, this relatively accounted for the high demand for hard currencies at the nation’s foreign exchange market.
“They go to the BDCs to buy whatever they can get at any rate. That is why we have asked that the BDCs should request for BVN of those to whom they sell forex and file the documents but they are not filing. The predators even demand for as much as $1 million from BDCs in Nigeria. This cannot happen in other countries.”

Tule said that while it is imperative for stakeholders in the financial industry to align with the bid to regulate the economy, a measure of patriotism in the efforts towards a stable macro-economic environment is also essential.

The director lamented at the level of frivolous forex demand which according to him is unsustainable and unacceptable.

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He however, called on Nigerians to support the CBN in blocking wastage of the nation’s foreign exchange on items that could be produced locally.

Charles Mordi, former director of research in CBN, also argued that government has no business in financing BDCs.

Though he noted that at the initial stage, some operators could kick against the idea, he acknowledged it will benefit Nigerians in the long run.

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