NAIJA BIZ

CBN suspends forex sales to BDC operators till further notice

Following the request of the Association of Bureau de Change Operators of Nigeria (ABCON) to declare market holiday on it’s members weekly bidding, the Central Bank of Nigeria (CBN) has suspended the sales of foreign exchange to operators of Bureau de Change until further notice.

The association had requested the apex bank through a “Letter of recommendation to Declare Market Holiday on Our Weekly Bidding Pending the Reopening of Our Nation’s Borders and the Control of COVID-19.”

The apex bank, in a circular signed by A.S Jibrin, Director, Trade and Exchange, CBN, and seen by Nairametrics, explained that its decision was based on the group’s recommendations to suspend the sales of foreign currency to members of ABCON until further notice.

Why the suspension matters: Nigeria and most foreign countries had implemented total shut down of air and land borders leading to a reduction in travels and demand for foreign exchange by travellers.

It read, “Furthermore, the Government’s directive to restrict gatherings to not more than twenty (20) persons is aimed at reducing a person to person contact and curb the transmission of the Covid-19 virus and that means that the concentration of the BDC encashers at disbursement centres would pose health challenges.”

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