CBN crashes forex rate for invisibles to N360/$, pumps $185m into market

CBN crashes forex rate for invisibles to N360/$, pumps $185m into market
March 27 17:06 2017

The Central Bank of Nigeria (CBN) has released the sum of $85 million for sale to Deposit Money Banks (DMBs) at the rate of N 357/$1 for onward sale to retail end-users at not more than N360/$1, for invisibles such as Basic Travel Allowance(BTAs), medicals, school fees, etc.

The Bank on Monday, March 27, 2017, also offered the sum of $100 million to authorized FOREX dealers in the interbank wholesale window to meet the requests of genuine wholesale customers.

Disclosing this on Monday, March 27, 2017, CBN’s Acting Director in charge of Corporate Communications, Mr. Isaac Okorafor, said the rates in the interbank window for wholesale transactions would still be determined by activities in the interbank market.

He said that all banks had also been directed to immediately post the new N360/$1 rate on electronic display boards in the banking halls of their branches, adding that examiners from the CBN would visit banks to ensure the new rates are implemented.

The CBN spokesmen also reiterated the Bank’s directive to all banks to process and meet the demand for Travel Allowances (PTA/BTA) by end-users within 24 hours of such application, while applications for school fees and medical bills are to be met within 48 hours of such application.

Okorafor warned that the new move, aimed at further easing access of genuine end-users to forex, prohibited banks from selling foreign exchange funds meant for invisibles to Bureau De Change.

Going forward, he reiterated that all banks would receive amounts commensurate with their demand per week, which would be sold to customers who meet usual basic documentary requirements.

He, therefore, urged customers to report any erring bank to the CBN for investigation and appropriate sanction.