BVN: Weekly Forex sale to BDCs falls by $100m

The Central Bank of Nigeria (CBN) has said that the  introduction of the Biometric Verification Number (BVN) has led to reduction in the weekly sale of foreign exchange to bureaux de change by $100 million.

CBN Governor, Mr. Godwin Emefiele, disclosed this weekend while speaking at the annual dinner of the Chartered Institute of Bankers of Nigeria (CIBN).

The CBN on October 22 directed that from November 1, 2015, the BVN will be used as criteria for foreign exchange transaction by BDCs and banks.

This made it illegal for BDCs and banks to sell foreign exchange to anybody without submission and verification of the BVN.

Speaking on the impact of this policy on the weekly foreign exchange sales to BDCs, Emefiele said: “While it may be too soon to completely adjudicate on the merits of our policies, preliminary signs indicate that we are headed to the right direction as a people.

“For example, we have managed to attain stability in the exchange rate at about N197/$1 since February 2015, although some are not happy with us for that action. Most speculators and rent-seekers have been eliminated from the forex market.