CBN Holds Interest Rate, Bans Dollar Sale to BDCs

CBN Holds Interest Rate, Bans Dollar Sale to BDCs

By Sahabi Abdul

The Central Bank of Nigeria kept its benchmark rate at 11.5 percent while ending sale of dollars to exchange bureaus amid narrowing options for price stability.

The Monetary Policy Committee also retained other parameters including the cash reserve ratio of 27.5 percent and liquidity ratio of 30 percent for banks, Central Bank of Nigeria Governor Godwin Emefiele said while briefing reporters in Abuja on Tuesday.

The Central Bank came down hard on exchange bureau operators as it announced the end of the weekly sale of 20,000 dollars to each bureau,  accusing them of economic sabotage.

Mounting exchange-rate pressure.

We are concerned that BDCs have allowed themselves to be used for graft,Emefiele said.  “The Central Bank will henceforth discontinue the sale of forex to Bureau de Change operators.”

Nigeria’s naira has been under pressure in the face of dwindling receipts from oil, the country’s main export and source of more than 90 percent of foreign income.  The situation was exacerbated by the coronavirus pandemic and an erratic recovery.