The Central Bank of Nigeria (CBN) has announced that it will inject extra dollars into approved banks in order to increase the economy’s foreign exchange supply.
Senior CBN officials told ThisDay that the apex bank can handle all valid transactions channelled through banks.
The black (parallel) market accounted for less than 1% of FX transactions, according to the officials, and should never be utilized to decide Nigeria’s dollar exchange rate.
According to the news report, the apex bank met with ministries, agencies, and departments (MDAs), including airline operators, to discuss stopping the collection of foreign currency payments.
Officials also stated that anyone who collect rent in dollars would face legal action, and that those in need of dollars for international transactions should go to their banks.
What CBN officials are saying
According to ThisDay, CBN officials said, “There is no reason for anyone, who needs dollars to go to the black market as long as the person needs dollars for legitimate purposes.
“Anyone patronising the black market to buy dollars at such rates must be engaged in illegal business because he can get the same dollars from the banks, the CBN, investors and exporters’ window at much lesser rates.
“So, what is the reason they’re going to the black market? Let those going to black market illegally desist from doing so.
“Their banks will sell them dollars through any of the approved channels. If anyone is refused, he/she should come out openly to report the bank. We will deal with the bank.
“For instance, agencies like the Nigeria Ports Authority and others that request some customers to pay dollars have been asked to stop such forthwith.
“Also, agencies such as the Federal Airport Authority of Nigeria (FAAN) or airline operators involved in charters and international airlines tickets must all be done in naira, as long as they are in Nigeria.
“Traders who go to the black market will lose their capital as their replacement cost can never be matched in the black market because their import will always be too expensive so they had better look inward and begin local production.
“Manufacturers too should reduce their overdependence on imported raw materials in production as we build an economy, where most raw materials would be sourced locally.”
What you should know
- At the last Monetary Policy Committee (MPC) meeting on Tuesday, July 27, 2021, the Central Bank of Nigeria hit at the Bureau De Change (BDC) for illegal forex trading and stated that it will henceforth discontinue the sale of forex to the Bureau operators in Nigeria.
- The CBN Governor, Godwin Emefiele, also announced a halt on the licensing of new Bureau De Change (BDC) operators and further processing of BDC application for forex across the country.
- The CBN had directed Deposit Money Banks (DMBs) to set up teller points in designated branches for the sale of foreign exchange to meet legitimate forex requests of their customers.
- In complying with the CBN’s directive, deposit money banks in the country swiftly moved to set up teller points within their banking halls to attend to the forex needs of customers.
- All commercial banks have been ordered by the Central Bank of Nigeria (CBN) to publish on their websites, the names and Bank Verification Numbers (BVN) of customers who participate in fraudulent and unscrupulous tactics to obtain foreign exchange from banks.
- The Central Bank of Nigeria has advised microfinance institutions against engaging in certain prohibited activities, including wholesale banking and foreign exchange transactions.
- The Central Bank of Nigeria has stated that travelers who purchase foreign money from banks for travel purposes but do not depart two weeks after their scheduled departure date must return the currency to the banks.
- According to AbokiFX the naira fell to N545 to the dollar on Friday.