GRASS ON CENTRAL BANK OF NIGERIA'S BUSY ROAD

It is said that grass does not grow on a busy road even if is unconstructed. Just a footpath perhaps.

But leave a tarred road unused for a long while, grass soon over grows it and you can only reclaim by doing expensive weeding.

This seems like the situation the Central Bank of Nigeria and securities now find themselves dealing with in regards to the operations of the bureau de change operators.

Latest report say the securities agencies have been raiding offices of BDCs to ensure they sell foreign exchange within contractual limits.

Well this night deter many for a while especially the foot soldiers at roadsides shouting dollar, dollar etc.

One because they get their supply from official sources especially from BDCs.

But it will only amount to clearing a dirty road of spreading grass and hoping that it will remain without grass for long.

It won't because in this case, the problem is that there is not enough supply of forex yet and two, the need to survive (may be better seen as greed) that drives the operators and footsoldiers is yet to be diverted into more useful activities.

The BDCs almost died at the take off of the inter bank market and when official allocation of forex to them was reduced or stopped.

They are back because small scale demand for forex is too low to command the attention of inter bank operators with long list of customers waiting for allocation for imports, dividend export; and even investment capital repatriation.

Find ways to increase more and more inflow, and everything else will surely fall into place. For now priority forex allocation is impossible because it was abandoned with the inter bank market introduction June this year.

Hence the only way to keep BDCs supplied with forex and also ensure they sell within limits is to ensure securities raid is consistent and busy enough to keep the grass from growing again.

Of course, this is impossible because soon it is securities operatives that will start reaping from it all as corruption takes greater hold.

This is Nigeria where a sitting President thinks it is always expedient to undermine the rule of law to enforce the rule of law.

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