Central Bank of Nigeria ends the sale of forex to Bureau De Change
The Central Bank of Nigeria ends the sale of forex to Bureau De Change operators in the nation: "The Central Bank of Nigeria says it has ended the sales of forex to Bureau De Change operators, saying the parallel market has become a conduit for illicit forex flows and graft. The bank said it will also no longer process applications for BDC licences in the country. Weekly sales of foreign exchange by the CBN will henceforth go directly to commercial banks, the CBN governor, Godwin Emefiele, said Tuesday in a live TV broadcast after announcing that the bank has retained its benchmark policy rate."
Aside from the traditional (bankers bank, issues of legal tenders, etc.) and regulatory (Bank rate, moral persuasion) role central banks play, they also shoulder the responsibility of development (drafting out policies that shape economic futures).
Recently, I have been reading articles and materials on how to finance Africa’s post-COVID development, one thing that comes out obvious is that there is need for transparency in the financial system. Largely, which is known to all, the people at the bottom are not the problem, they know and understand the implication of broken trust-esusu says a lot, so it safe to say it not a bottom-up method that holds the key but, a top bottom!
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
By the way, I just had to go back to my Secondary School Accounting book, and I do not see where third parties play crucial role. Yes, the act as intermediaries but they leave a hole of unaccountability. We know the amount that moved yet we don’t know why it was moved- even in cases of Ransoms, the “whys” are known. So, to this the Central bank of Nigeria should be applauded.
Further, this unnecessary layer creates the same effect of Bitcoin- capital magically grows thus devaluing home currency and this swings are just anchored on pure sentiment not on factors of production.
So, if we are going to be on the right path, past this we need to become very strict with how cash flow it makes the world take us more serious.
Good evening.