CBN directs banks to sell N360/$1

The Central Bank of Nigeria (CBN) has again 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.

Last week, the CBN Governor, Mr. Godwin Emefiele at the last Monetary policy Committee meeting assured that the Bank was going to sustain its intervention in the market aimed at closing the gap between the interbank and parallel market rates in the country.

He also assured that those betting gainst the Naira would surely have their fingers burnt because the rate will continue to go down.

The apex Bank also on Monday offered the sum of $100 million to authorised FOREX dealers in the interbank wholesale window to meet the requests of genuine wholesale customers.

Disclosing this, the CBN 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.

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

The CBN spokesman also reiterated the Banks directive to all banks to process and meet the demand for tavel 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.

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 changes.

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.