There appears to be a silver lining in the economy sky, as the Central Bank of Nigeria, CBN, has directed all banks to immediately begin sale of foreign exchange, FOREX, for basic travel allowance, BTA, PTA, Tuition and medical fees to customers at not more than N360 per dollar. The
Isaac Okorafor, acting director, Corporate Communications, CBN, said the apex bank will sell to banks at 357 naira per dollar. Banks are to post the new rates in the banking halls of their branches immediately. CBN will send examiners to banks to ensure the new rates are implemented. Banks are prohibited from selling FX funds meant for invisibles to BDCs.
Following Thursday’s FOREX wholesale auction, the CBN last Friday concluded transactions on the sum of $100 million earlier offered at the interbank market to meet customers’ demands, out of which authorized dealers were only able to pick $81.347 million after an initial bid for $91 million.
Okoroafor said the inability of authorised dealers to pick up the entire offer of the CBN was because of the increasing dollar supply and sense of apprehension among dealers who anticipate a further crash in the rate of the dollar.
He said the determination of the Bank to sustain its current interventions in the market. According to him, “those who doubt the capacity of the Bank to sustain the intervention in the FOREX market are beginning to have a change of mind”.
This is coming on the heels of reports across major cities in the country that the Naira sustained its bullish ride against major currencies, especially the United States dollar, which exchanged at an average of $1/N385. This, no doubt, has triggered further apprehension among speculators, who anticipate further losses given the continued crash of the dollar.