Not a few are of the view that a strong impediment to the effort of the regulatory bank to achieve exchange rate stability is in the operation of the BDCs.
The Central Bank of
This newspaper certainly notes the concern of the
In fact, not a few are of the view that a strong impediment to the effort of the regulatory bank to achieve exchange rate stability is in the operation of the BDCs. Presently, records show that there are 5,208 registered BDCs in the country while 1,417 applications for license are awaiting the approval of the Apex bank. CBN still funds their operation and reports indicate that the
Even then the availability of many online payment options now has reduced considerably the operations of the BDC. Equally worthy of note is that presently there are many credit or debit cards available and Nigerians could take advantage of any of these to meet their need for foreign currency.
Besides, there are indications that the activities of BDCs have encouraged money laundering and subsequentdollarization of the Naira.
But beyond these we also think that the CBN should not lay the blame of the exchange rate instability on the activities of the BDCs alone. We agree with
"equally induced by the excess naira supply" the apex bank deliberately instigates in the money market through its monetary policy. This has created adverse economic consequences, which include inflation and high cost of funds in the money market. Perhaps, besides sanitizing the operations of the BDCs, the
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