“Too Cheap": CBN Names BDC Operator Selling Dollars Below N700/$, Begins Manhunt for Others
- The Central Bank of Nigeria is investigating a Bureau de Change operator for selling dollars cheaper than the official rate
- The move is part of ongoing efforts to stabilise the forex market and combat illegal financial transactions
- There are over 5,000 Bureau de Change operators in Nigeria licensed by the CBN to buy and sell dollars
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The Central Bank of Nigeria (CBN) is investigating a Crown Agent, a Bureau De Change (BDC) operator, for selling dollars below the official rate.
Data from FMDQ securities shows that at the official market's Investors and Exporters window, the naira closed at N744.97/$1 on Tuesday, September 5, 2023.
The concern by CBN means that the BDC operator must have been selling the forex below N700 per dollar, which is considered too cheap.
Source: Facebook
Folashodun Shonubi, the acting Governor of the CBN, who disclosed the ongoing probe to journalists, also mentioned that the BDC operator is being investigated for illegally bringing forex into the country and selling it to Nigerians.
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He vowed that the apex bank would deal with all erring BDC operators in the country, Punch reports.
His words:
“For the last few weeks, we have been investigating and quite a few players have been bringing in money and selling at less than the official rate. One of those we have investigated recently is Crown Agent.
“We have reason to believe that, we have been working with international agencies on this. We are looking at those who do not follow through the normal system, send it through them, and sell it to Nigerian companies.
"They can expect to hear from us shortly. And they will not be the only ones.”
The move by the CBN to clamp down on BDCs is part of its ongoing effort to ensure stability in the foreign exchange market.
Bureau de Change operation in Nigeria
There are a total of 5,691 CBN-approved BDC operators. Here's a breakdown of the top 10 states with the highest numbers.
- Lagos: 2,958
- FCT: 1,179
- Kano: 981
- Anambra: 259
- Kaduna: 55
- Abia: 50
- Oyo: 32
- Enugu: 25
- Rivers: 24
CBN announces dollar to naira price verification portal
Meanwhile, in another report, it was revealed that the Central Bank of Nigeria had introduced a new portal that will put an end to malpractices in the foreign exchange market.
The portal is set to go live by the end of August 2023, and it is expected to be a game-changer if done correctly.
The analyst who spoke to Legit.ng explained that the portal could be a game-changer if done correctly.
Source: Legit.ng
