CBN to penalise banks that refuse to sell forex to customers

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[Abuja]–The Central Bank of Nigeria  has threatened to penalise any bank refusing to sell forex to customers.

The CBN made this threat to remedy the depreciation of Naira against Dollar.

In the last two weeks, the Naira began to weaken again against the dollar, which was attributed to alleged hoarding of the greenback by commercial banks, and insufficient supply to the BDC segments and other stakeholders.

However, CBN has increased the forex supply to the Bureau de Change from 8,000 dollars per week to 10,000 dollars in order to sustain its Intervention.

In the same vein, the CBN has auctioned $418 million at a marginal rate of N310 to a dollar, to airlines, agriculture, petroleum and raw materials sub sectors.

The CBN acting Director, Corporate Communications, Mr Isaac Okorafor said that in the weeks ahead, the CBN would further sustain its intervention through the sale of foreign exchange to all segments of the market, like the interbank and the BDC.

He said in Abuja that the $480m offered last week was in addition to the $350 million sold as wholesale auction for travel allowance and school fees at the same period.

“The Bank will sell short tenured forwards of 7 to 30-day maturity to meet demand of manufacturers and all other foreign exchange users.

“These significant injections of foreign exchange into the market should reassure all foreign exchange users of our determination to continue to meet all legitimate forex demand in the market,” he said.

The CBN in recent months had injected dollars to the inter-bank and Bureau de Change foreign exchange market in its bid to sustain forex supply to different categories of users.

This translated to the appreciation of the Naira from an all time low of about N560 to a dollar, to N355 within two months.

Presently, the Naira  sells at N405 to a dollar in the parallel market

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