The Federal Government has recently urged the Central Bank of Nigeria (CBN) to reduce the number of Bureau de Change (BDC) operating in the country from over 5,000 to about 200. According to Tope Fasua, Special Adviser on Economic Affairs for President Tinubu at an economic policy event organized by Abuja Chamber of Commerce and Industry, this move is necessary due to difficulties in supervising such a large number which leads forex market irregularities.

Fasua believes that reducing BDCs will help define illegal markets and thus create stability within them. He also noted that other countries have much fewer BDCs with similar populations; for example he cited The United Kingdom as having only 100-200 despite its larger population size compared with Nigeria’s. This suggests .............


https://ratecaptain.com/cbn-to-reduce-number-of-bdcs-fg/

Okay oooo.
another trial and error policy.
time will tell.

Isn't this the same thing we have been shouting since June?

Remove the operations of BDCs in Nigeria, thereby eliminating the hoarding of foreign currencies by these agents who'll have no choice but to find ways to dispose whatever they have stacked in reserves by their Alhajis in charge, who will in turn push those dollars back into the market since there'll no longer be the avenue for them to sell the dollars freely on the streets.

That way, you give sole control back to the official body, ditto the CBN. But mumu woke up and his coconut head told him to float the naira. Ode!

APC is try-your-luck government. Nothing based on empirical analysis. When you register the 200 BDC, the rest 4800 will now become a huge black market. Then we would now have 3 exchange rates:
I&E - #900 to $1
BDC- #1100 to $1
Black market- #1500 to #1

The black market will always win as they will always have more patronage. Soon round tripping from BDC to Black market will finish off the Naira.

Tinubu should just throw in the towel.

GOOD. ALL THE BDCS ARE OWNED BY THE BANKS' CHIEF EXECUTIVES. EMEFIELE HAS SPECIAL FRANCHISE FOR POS IN NIGERIA. PARALLEL MARKETS SHOULD BE BANNED.

Good, I wish they can accomplish that...