By Obinna Chima
The Central Bank of Nigeria (CBN) yesterday explained that its directive to banks that act as agents of international money transfer operators to commence the sale of foreign currency remittances to licensed Bureau De Change (BDC) operators was aimed at achieving exchange rate convergence.
THISDAY reported at the weekend that the central bank had directed authorised dealers who are agents to approved international money transfer operators to sell foreign currency accruing from remittances to licensed BDCs as part of efforts to boost dollar liquidity in the market and ensure stability of the exchange rate.
In its circular, the central bank said: “The foreign currency proceeds of international money transfers sold to BDC operators shall be retailed to end-users in compliance with the provisions of Anti-money Laundering Laws and observance of appropriate Know-Your-Customer (KYC) principles, including the use of Bank Verification Numbers (BVNs).”
Lending further insight into the directive, Ukeje explained that it was not a policy reversal, adding that the CBN would not be the sole source of FX funds to the BDCs.
“Previously, we were allocating forex, but we decided that we were not going to be taking money from our reserves to be doing that.