To meet requests from customers for foreign exchange following its decision on Monday to set the upper limit of the exchange rate, the Central Bank of Nigeria, CBN, has released $85 million to banks for sale to customers.
The forex was sold to the banks at the new rate of N357 to the dollar for onward sale to retail end-users at the new ceiling rate of not more than N360.
The spokesperson of the CBN, Isaac Okorafor, said the forex was to meet the demand for invisibles such as Basic and Personal Travel Allowances, medicals and school fees.
Mr. Okorafor said the allocation on Monday was in addition to about $100 million to authorized forex dealers in the interbank wholesale window to meet the requests of genuine wholesale customers.
He said the rates in the interbank window for wholesale transactions would still be determined by activities in the interbank market.
“All banks had also been directed to immediately post the new N360 per dollar rate on their electronic display boards in the banking halls of their branches for easy monitoring of compliance,” Mr. said. “The examiners from the CBN would visit banks to ensure the new rates are implemented as directed.”
The CBN spokesperson restated the bank’s directive to all banks to process and meet the demand for all travel allowances by end-users within 24 hours of such applications, while requests for school fees and medical bills would be met within 48 hours of such application.
Mr. Okorafor warned that the new move by the CBN was aimed at further easing access to forex by genuine end-users, pointing out that banks were prohibited from selling foreign exchange funds meant for invisibles to Bureau De Change.
“Going forward all banks would receive amounts commensurate with their demand per week, to be sold to customers who meet usual basic documentary requirements,” he said.
He therefore urged customers to report any erring bank refusing to sell at stipulated rates and conditions to the CBN for investigation and appropriate sanctions.
Earlier, the CBN said it had set a ceiling of N360 to the dollar as official exchange rate for the Naira.