The governor of the Central Bank of Nigeria said the only rate he recognizes is the I&E window rate, citing that the black market rate is set by illegal exchange traders.

CBN Governor Godwin Emefiele revealed this during today’s Monetary Policy Council meeting.

Emefiele said this in response to a question about his views on BDCs. He said “Nigeria was the only country where the Central Bank sells foreign currency from its reserves to BDC operators. The question we ask ourselves is why it took us so long to ban their operation.

The governor went further by stating that the only recognized rate is the window I&E rate.

He said, “The only exchange rate I can recognize today is the I&E window rate, which is the rate we expect from anyone looking to source foreign currency. “

“I do not recognize that there are other rates on the market”, he added.

What does that mean

The CBN governor’s response shows that the government would not change its resolution and lift the ban on the sale of foreign exchange to BDC operators anytime soon, as many had predicted.

In addition, the CBN has once again publicly expressed its contempt for black market rates and operations as it has questioned the operations of online exchange rate websites such as AbokiFX.

In case you missed it

  • In July 2021, the governor of the CBN banned the supply of foreign currency to BDC operators in the country, following various operators’ breaches of Nigeria’s monetary policy.
  • On Monday, Nairametrics reported that the Association of Bureau De Change Operators of Nigeria (ABCON) said the CBN should contact licensed BDC operators as soon as possible to resolve issues resulting from the regulator’s forex suspension policy.
  • The Central Bank of Nigeria’s Monetary Policy Committee voted to maintain the benchmark interest rate at 11.5%, while holding all other monetary parameters constant.
  • Emiefiele, while answering questions after the MPC meeting on Friday, September 17, 2021, called Mr. Olumide Oniwinde, the owner of abokiFX, an illegal FX broker who will be prosecuted for endangering the Nigerian economy.

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