Forex: Between CBN and banks

THE Central Bank of Nigeria (CBN), some time ago, directed that the Bureau De Changes (BDCs) should stop participating in the forex business and directed all end users of foreign exchange to source their needs through the commercial banks.

The CBN’s directive was promptly obeyed by all, especially the BDCs that were at the receiving end of the directive. They carried on with their business, believing that sooner, the apex bank would see reason with them and allow them to return to their traditional business.

However, the CBN, after a careful review of the explanations by the BDCs, made a reversal of its decision by directing that the Bureau de Changes be allowed back into the forex business, saying the BDCs be allowed to sell all inflow of foreign currencies to the public.

But that directive to the commercial banks is yet to be obeyed as the commercial banks have continued to hold on to the business already ceded to the BDC by the CBN.

As a participant in the BDC business, one is confused as to who holds the sway or simply put, who controls the lever of power on monetary policy between the CBN and the commercial banks.

If in the wisdom of the apex bank, it directed the commercial banks to sell all inflow of foreign currencies to the public through the BDC, but the banks just refused, carrying on as if their obedience of the directive was just voluntary, it worries one because the powers to regulate banking activities in the country rests with the CBN.

It is on this note that I’m writing this letter so that the CBN and all concerned authorities will once again intervene and call the commercial banks to order.


  • Mudasiru Bolatito,


onomically today, I believe that President Buhari will not betray the trust and enormous goodwill through which he rode to power.

I hope Nigerians will be patient, while hoping for the best as we await the positive result of the economic policies President Buhari has taken.

Administering a country as complex as Nigeria is not a simple task, and one thing we should know is that this government has spent only one year out of a four-year term, so it is only wise for us to wait before deciding on whether this government is a success or not.

However, one thing I am sure of again is that the president knows the enormous support he got from Nigerians, and he would not want to betray such.

However, there is the need to remind the president that there is really no more time for him now, and he has to start moving with speed. It is also imperative for the president to look at the mood of the people and decide what is best for the country.

It is important for the government to focus on building refineries so that the price of fuel can go down drastically, as well as providing uninterrupted power supply for the people.

  • Prophet Oladipupo Funmilade-Joel,