their support to the major policy shift, with the members of the Manufacturers Association of Nigeria (MAN) saying the decision would help address the inefficiency of operators in the BDC market.
In a statement titled: MAN’s Perspective on the CBN New Policy on Forex Allocation to BDCs, the association noted that a major challenge with the allocation of forex to the BDC segment is that “operators always lacked the ability and the will to continuously adhere to set guidelines. Most times their operations drift into round tripping and other financial incongruities that negate the overall objective of creating the BDC foreign exchange market.” This, they noted, leads to an escalation of the premium of foreign exchange in BDC in comparison to the official window, thereby further depreciating the naira.
Nevertheless, the statement, signed by the Director General of the association, Segun Ajayi-Kadir, pointed out that…
