The Governor of the Central Bank of Nigeria, Godwin Emefiele, has blamed the CBN’s funding of Bureaus de Change (BDC) operations with $66 billion over an 11-year period for the current depletion of the country’s reserves, saying this also contributed to the economic crisis.

He complained that the funds if spent on economy-stimulating activities such as infrastructure and industry for wealth creation, would have prevented the current crisis in the country.

“In September 2008, Nigeria’s foreign reserves stood at $62 billion. But what did we do with $62 billion at a time crude price was in excess of $120 per barrel? What we could have done was to save the money, if we couldn’t save the money, invest it in infrastructure and industry that will create productivity and wealth for our people. Instead, the central bank at that time went about licensing Class A, Class B and Class C bureau de change operators. For Class A BDCs, the central bank was allocating $1 million per week, for Class B, the CBN was allocating $750,000 per week and for class C BDCs, the central bank was allocating $500,000 per week. The CBN was among one of the few central banks in the world allocating dollar cash for BDC operations.” ThisDay quotes Emefiele as saying.

READ MORE: http://nairametrics.com/in-emefieles-opinion-this-is-what-is-responsible-for-nigerias-depleted-reserves/

Cc:lalasticlala

Emefiele is confusing Arab's and Chinese Banking with the Capitalist authodox system on which our CBN operation is built.