The Central Bank of Nigeria (CBN) has directed all banks to immediately begin sale of foreign exchange for BTA, PTA, tuition and medical fees to customers at not more than N360 per dollar.
Isaac Okorafor, acting director of corporate communications, announces on his Facebook wall that CBN will sell to banks at N357 per dollar.
Banks are required to post the new rates in the banking halls of their branches immediately, Okorafor says, adding that CBN will send examiners to banks to ensure the new rates are implemented.
Banks are prohibited from selling foreign exchange funds meant for invisibles to BDCs. Often, however, they do not abide by the rule, prompting many to question their patriotism.
Through several interventions, including pumping in about $2billion to the market in the past four weeks, the CBN has brought down the dollar from N520 to N390 in the black market.
Nobody knows how long it will be able to sustain the current rates.
On Tuesday, March 28, the CBN’s spokesman issued another release:
Forex: CBN slashes BDC rate to N360
…$100m offer fully subscribed
ABUJA – Barely 24 hours after its directive to deposit money banks (DMBs) in the country to sell foreign exchange obtained from it to retail end-users at not more than N360/$1 for invisibles, the Central Bank of Nigeria (CBN), on Tuesday, March 28, 2017, crashed the rate at which it sells forex to bureaux de change (BDCs) in Nigeria to N360 and directed the BDCs to sell to end-users at not more than N362/$1.
The CBN acting director of corporate communications, Isaac Okorafor, confirmed the directive in Abuja on Tuesday, disclosing that the CBN, under the new policy, would sell forex to the licensed BDCs at the rate of N360/$1, while they will in turn sell to customers at a rate not more than N362/$1.
Okorafor said the objective of the new forex sale policy was to ensure a convergence of the rates in the interbank and BDC, stressing that the CBN remained committed to ensuring transparency in the market as well as fairness to end-users, many of whom hitherto experienced challenges in accessing foreign exchange.
He therefore urged licensed BDCs to play by the rule, cautioning that the CBN would not hesitate in sanctioning any erring dealer.
Meanwhile, the CBN spokesman also disclosed to newsmen that the sum of $100 million offered to authorized forex dealers in the interbank wholesale window to meet the requests of genuine wholesale customers was fully subscribed at the auction on Tuesday, March 28, 2017.
Okorafor also reiterated his call to all stakeholders to play their respective roles in ensuring a smooth running of the foreign exchange market for the benefit of the Nigerian economy.
Increase in Forex sale to BDCs
In continuation of its determination to sustain liquidity in the foreign exchange market, the Central Bank of Nigeria (CBN) wishes to inform market participants and the general public that it will commence twice weekly forex sales to bureaux de change(BDCs) from Monday, April 3, 2017.
Licensed BDC operators are therefore required to fund their accounts with the CBN on Mondays and Wednesdays, while they receive their purchases on Tuesdays and Thursdays respectively.
The sale amount to BDCs is hereby increased to $10,000 weekly ($5,000 per bid) and a new rate will be announced on Monday, April 3, 2017.
