- The Central Bank of Nigeria has decided to stop providing foreign exchange to bureau de change operators across the country
- CBN governor, Godwin Emefiele, said the bureau de change operators have been conducting illegal businesses with corrupt individuals
- Emefiele said some embassies and foreign companies patronise illegal operators who he said have been involved in money laundering
Bureau de Change operators will no longer get foreign exchange from the Central Bank of Nigeria (CBN) following the accusation of money laundering.
Godwin Emefiele, the head of the financial regulator made the new development known on July 27, during the monetary policy committee meeting in Abuja.
About 5,000 applications are sent to the central bank monthly by the operators who are mostly seen lurking around the street of Lagos, Abuja and other states.
Why CBN is not giving Bureau de change operators forex
The apex bank banned the operators from being recipients of forex due to their involvement in illegal financial flows within the county.
Emefiele stated that the bureau de change operators connive with corrupt persons to conduct money laundering in Nigeria, and CBN can no longer accept the bad practices.
“They have turned themselves away from their objectives. They are now agents that facilitate graft and corruption in the country. We cannot continue with the bad practices that are happening at the BDC market.”
Nigerian banks, foreign organisations threatened with sanctions
The CBN boss said foreign companies that patronise illegal bureau de change operators will be reported. Emefiele claimed that embassies are also involved in obtaining forex through illegal means.
He also warned Nigerian banks against transacting with illegal forex dealers, stating that they will be punished severely by the regulator if caught.
CBN to launch cryptocurrency for Nigerians
The financial regulator has announced that Nigeria will soon have its own digital currency amid restrictions placed on bitcoin and other cryptocurrencies.
CBN is planning to launch the government-backed cryptocurrency in October, and it will be available to every Nigerian like the naira.
Although the digital currency might face some challenges as Nigerians are doubting the intention of the government and fear that the crypto wallet will be borrowed from.