CBN Retains 11.50% MPR, To Hammer More BDC’s

CBN
CBN
The Monetary Policy Committee (MPC) of the apex bank has voted to leave the benchmark interest rate unchanged at 11.50%
The decision which was reached at the close of today’s MPC meeting, saw members voting unanimously to amongst other things retain MPR at 11.50%, retain asymmetric corridor at +1%/-7%, retain CRR at 27.50% and also retain liquidity ratio at 30%

The MPC however, observed the abuse of regulations byBureau De Change( BDC operators and frowned at the rent seeking behaviors and therefore moved to arrest the situation
Following the observed breach by (BDC) operations, members decided that the
CBN should stop forex sale to BDC operators; suspend more BDCs in the country as well as re-channel forex sales to commercial banks to meet PTA, BTA needs of customers

In line with the foregoing, Commercial banks have been charged to dedicate teller points in every branch for sale of forex to customers.
Customers were equally advised to report banks that fail to sell forex to them despite meeting the necessary requirements.

Meanwhile, the CBN has threatened to come down hard on commercial banks who were found to have connived with foreign embassies. missions and institutions who have conducted their forex businesses illegally and in flagrant abuse of local regulations. The apex bank would also
report such errant institutions to the relevant authorities in their home countries in an effort to redirect forex business to the I&E FX window