Monday, September 27Inside Business Africa

CBN to infuse more dollars through banks to improve forex supply

Banks warn customers against violation of CBN forex directives

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.”

Source: Nairametrics

Leave a Reply

Your email address will not be published. Required fields are marked *