Central Bank of Nigeria Governor, Mr. Godwin Emefiele, was interviewed at the end of the Monetary Policy Committee meeting yesterday
Emefiele spoke about recent initiatives by the banking sector regulator. One of the questions he was asked was: “With the ban on forex sales to BDCs, don’t you think there would be pressure on the exchange rate?”
Godwin Emefiele replied: “When you talk about pressure on the exchange rate, I don’t see it because if you are sure that you’re conducting a legal business and you are authorized; you want to pay medical bills, you want to pay school fees, you know it is legal, you know it’s not something meant to perpetrate graft and corruption – go to your bank. The bank will take your documentation and they will do your transfers for you”.
“You don’t need a BDC given the fact that we are so disappointed and we cannot continue with the bad practices that are happening there. I had said so about four or five MPC meetings ago that what happens in that market, as insignificant as the volume is, that they are all perpetuating graft, corruption, exchange of bribe money. Instead of taking your naira in big bags, you chose to collect dollar cash in small bags. We will not facilitate that for you again. It is not what a central bank should support. That is the reason we have taken this position today”, he added.