By Audrey Lotechukwu
TUE 27 JULY, 2021-theGBJournal-The Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) rose from its fourth meeting of the year today and as expected by most analysts, assessed the global and domestic macroeconomic and financial market developments, provided forward guidance on the timing of a change in monetary policy stance and held rates steady to support economic recovery.
The MPC voted to retain the Monetary Policy Rate (MPR) at 11.5 per cent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 per cent; and retain the Liquidity Ratio at 30 per cent.
The decision to hold all parameters constant was unanimous, as revealed by the CBN Governor, Godwin Emefiele during a press briefing after the Committee rose from its meeting.
The surprising announcement is the decision of the CBN to ban with immediate effect the sales of foreign exchange to Bureau De Change (BDCs) operators in the country.
In making the surprising announcement to discontinue the sales of forex to the BDCs, the CBN Governor said, the MPC noted with disappointment and great concerns that the BDCs had defeated their purpose of existence to provide forex to retail user, but instead, they had become wholesale and illegal dealers.
‘’The BDCs had continued to make huge profits while Nigerians suffered in pain.’’
He noted that the commercial banks would be monitored to provide foreign exchange for the legitimate use of Nigerians
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