Banks seek forex buyers as CBN continues to flood market

Central Bank of Nigeria (CBN)
Central Bank of Nigeria (CBN)

The new strategy of the Central Bank of Nigeria, CBN, to meet all legal demand for foreign exchange, Forex, has led Money Deposit Banks to contend with expending all the dollars in their possession.

A check by the News Agency of Nigeria in Abuja showed that the banks had cleared all backlog of demands for foreign currencies for basic travel allowance, school fees and medicals.

A source in the United Bank for Africa, told NAN that UBA had so much dollars that the bank’s marketers had been asked to encourage customers to request for foreign currencies.

The source said that the bank wanted to avoid a situation where it was forced to return excess forex to the CBN.

He explained that doing so would force the CBN to reduce the quantity of forex it sold to banks.

Another source from First Bank said following the CBN intervention, the bank had succeeded in clearing all pending requests for forex as far back as September, 2016.

Also, a source in Guaranty Trust Bank commended the decision of the CBN to flood the market with forex, thereby allowing the banks to meet legitimate demands from its customers.

It was also gathered from Heritage Bank that prior to now, the bank published the names of individuals and companies it disbursed forex to in a page of any particular newspaper.

“Right now, we take two or three pages in the newspaper to publish names of legitimate individuals and companies that we disbursed forex to.

“We have more than enough foreign exchange to meet the request of our customers for school fees and others,” NAN was told.

In a data released by the CBN, the apex bank, within three weeks, injected more than 1.4 billion dollars for both wholesale and retail intervention into the interbank Forex market.

(NAN)


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  • Frank Bassey

    This may be dancing of the Masquerades. Where did CBN get this flood of Dollar to pump into the market within three weeks? Are we saying that the marginal rise in foreign reserves and oil price is all responsible for this massive turn of events? The truth will soon emerge. Someone must be playing a trick somewhere. What happened to the multiple exchange rate windows?

    • Watch man

      The truth has already emerged. Babatunde Gbadamosi released significant info inditing CBN. If that is true then CBN is doing what they are doing so as to cover up for the revelations made by Babatunde. My take is that if the CBN is not probed and made right this release of forex would not be sustained, it would just be for a short while and then it becomes business as usual. There are persons in this govt that have become evil load to the nation and they need to be off-loaded.