In an attempt to salvage naira and curtail the excesses of Bureau De Change (BDC) operators who exploit and artificially inflate dollar/naira exchange, the Central Bank of Nigeria (CBN) stopped the sales of forex to them. There are apprehension and speculations that the directive will stir artificial dollar scarcity and mount pressure on the naira – thereby, a spike in dollar/naira exchange rate.
From an ideal perspective, the directive is a move to discourage illicit financial flows, BDC racketeering, arbitrage and indiscriminate round tripping but, as beautiful as this policy seems, the CBN governor’s directive left some vacuum; which could backfire if not clarified with a practicable working template….
To read more, check full article on Daily Trust Newspaper.