FOREIGN EXCHANGE, BDCs AND CBN GOVERNOR'S POLICY SOMERSAULT

By Dr. Adeola Adeyemi

It is quite pathetic and worrisome the recent foreign currency policy somersault of the Central Bank of Nigeria (CBN) under the leadership of its Governor, Mr. Godwin Emefiele. The policy which is that CBN will stop giving BDCs foreign currency is capable of completely destroying many businesses and households. This anti-economic cum financial policy is coming amidst obvious economic challenges occasioned by poor financial policies of CBN, economic recession and COVID-19 pandemic.

It would be recalled that the country slipped into economic recession few months after Emefiele assumed office as CBN Governor in 2014. Since then till date, Emefiele has shown that he lacks the knowledge and experience to turn around the country's economy and finances for good.

One can say without mincing words that for Emefiele, being the CBN governor is all about making policies about foreign exchange that will be of personal benefit to the banks and his paymasters in foreign exchange related businesses to the detriment of the economy and the rest of Nigerians, especially the middle class and downtrodden.

This is not surprising considering that Mr Emefiele was appointed into CBN from Zenith bank. So, it is a case of him protecting his personal interest and that of his allies in the banking sector without minding the adverse multiplier effect on the citizens and economy at large. Zenith bank which has phobia and hatred for anything Bureau De Change became so strong and comfortable with Emefiele's elevation. Zenith bank as early as the inception of Bureau De Change never agreed to open a corporate account for BDCs. It doesn't also issue instruments in favour of BDCs. This is the prejudice and bias Mr Emefiele took to the CBN. Upon assumption of office as CBN governor he made nonsense of domiciliary account by putting in place policies that took Nigerians backwards.

Domiciliary account holders would travel abroad with their foreign exchange debit cards only to find out that they could only access maximum of $300 in a day. The cost of hotel accommodation, feeding and others is none of Emefiele's concern or worry. A lot of micro, small and medium business enterprises that hitherto put money together and import a forty feet container have been put out of business as a result of deliberate policies of banks supported by CBN to frustrate them and their businesses.

This is in an environment that unemployment is fuelling all sorts of problems and increasing crime rate.

The CBN before now has been hitting the BDCs below the belt. The apex bank would just pick some BDCs at random and sanction them and make them pay #5m each for an offence only known to the CBN. The latest allegation against the BDCs is that they are laundering money. What is the volume of foreign exchange given to the BDCs as a percentage of the whole. It is very insignificant and infinitesimal amount.

Assuming without conceding that some BDCs launder money, is that enough reason for CBN to put the entire people in the sector of the economy out of business without weighing the grave consequences? Is there no way CBN can curb such illicit activity if any exist? A Bureau De Change employs at least four persons. Each person has at least four dependants. It is clear that to the CBN governor, there is nothing wrong in throwing away the baby with the bath water.

It would be recalled that Prof. Charles Soludo was at a time the governor of CBN and the economy thrived. Please can someone advice Mr. Emefiele to search his office filing cabinet for some memos by Prof Solude, especially those that relate to foreign exchange policies . No doubt, Mr Emefiele will learn some lessons.

Today the exchange rate of dollar to naira is #515 as against the #503 few days ago that the BDCs were in operation. So even out of business BDCs are still making the exchange rate to go up?

Haba, Emefiele and his team should wake up from slumber and hallucination and proffer lasting solution to the financial cum economic woes of the country. BDCs are not the causes of rising inflation and dwindling economy. They should not be used as sacrificial lamb by Emefiele and CBN. BDCs have been supportive of the CBN policies and country's economy. They have provided succour and assistance to the people when it mattered most. They are genuine and legal business entities like every other one in the country.

Shutting the door behind them means adding more woes to the country's dwindling economy. It is time the leadership of the country call Emefiele to order because he is completely destroying the fragile and struggling economy of the country which he had failed to fix since emerging as CBN Governor. Silence is not golden at this point. It is not only about the BDCs, it is about Nigerians and survival of their economy.

Adeyemi, an economic analyst writes from Broad street Lagos.

http://saharareporters.com/2021/08/01/central-bank-governor%E2%80%99s-policy-somersault-foreign-exchange-bureau-de-change-dr-adeola

Everything is Political, I hope it ends well

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WhiteMoney for the money, who they breath?

They will be alright las las

I did not understand anything

Joseph Sanusi and Charles Soludu are best ever CBN governors.

To where, there are always two sides to a coin. What favours some may not favour the others.

Na lie oga, which economy that dollar was nose diving. See people hawking and selling dollars to mallam in the guise of BDC. Anuofia

Story

Emefiele is a super dunce, despite their daft initiatives on FX, dollar still dey rise like garri.

Infact

Somersault like jet Li

This one too don gbagaun. Well, Nigeria will be great in our lifetime...

Seen

Stupid bastard

MY QUESTION IS THAT WHERE IS EDUCATED NIGERIANS _____

X

Honestly the way this thing is going, I'm 100% sure dollar will hit 600 before December. The system is too corrupt.banks are hoarding dollar and the BDCs are hoarding dollar too.go to bank you can't get dollar because the staff are hoarding it for their customers who will dash them huge money after approving your BTA/PTA. Imagine since Monday I applied for PTA,until now no show because the staff handling my application know I will not give her shishi if I get the PTA. Very big shame .this country is finished

He jus a stooge for Jim ovia

Behind so the policy confusion are dumb ass politicians pulling the strings for their selfish reasons

We are finished

I believe Buhari and his boys are deliberately doing this in order to reduce the power of the naira compared to dollars hence less Nigerians will not have the economic power to japa while their loot in US banks increase when they want to spend it in Nigeria

In my next life,if I come as a Nigerian,I go carry knife for hospital chook myself

Since all of Una na stolen monies una the use e no the affect Una na only legit hustlers the suffer the thing bihari if Una like make Una share money for street I no understand this government from day one some time I the reason say na sambisa pattern Una the use rule sef thats by the way how fa with obi OMA tailor Abba carry na abi Afghanistan problem don block everywhere make the talk that one ma o notherners ma the run street no be only this side o

Some people think it is only Hausa that is dealing in Bureau De Change but that's not correct, the CBN policy is not in the right direction. Is like frying pan to fire, the bank will definitely hoard dollar and BDC can not run out of business