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Forex Crisis: Stop Funding BDCs – MAN Tells CBN

CBN3

The Manufacturers Association of Nigeria has advised the Central Bank of Nigeria to stop funding Bureau de Change operators, saying that this would assist in ameliorating the current foreign exchange crisis that has hit the nation’s economy.

MAN, in a statement on Monday, wondered why the BDCs should depend on official allocation of forex from the CBN for their survival, adding the BDC market should provide alternative funding window to the economy.

It, therefore, emphasised the need for the BDC operators to source their forex needs independently from alternative sources and supply to the market.

The association has also suggested the use of ‘guided deregulation’ such that the naira would allowed to flow freely within a bracket which the CBN will determine.

MAN also linked the current forex crisis to the petroleum subsidy scheme, noting that “a major source of forex wastage in Nigeria is through the ongoing subsidy on importation of petroleum products.”

This post was last modified on December 23, 2015 6:24 AM

Categories: BANKING
Haruna Magaji: Haruna Magaji is a journalist, foreign policy expert and closet musician. He is a graduate of ABU Zaria and a member of the Nigerian union of journalists. JSA, as he is fondly called, resides in Suleja, Abuja. email him at - harunamagaji@financialwatchngr.com
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