Naira falls to new lows As CBN Channels N2.3tn Forex Sales to Commercial Banks

Naira dollar rates3
Naira dollar rates3

Naira falls to new lows As CBN Channels N2.3tn Forex Sales to Commercial Banks – The naira to dollar exchange rate dipped to N505 to one dollar at the parallel market on Tuesday as the Central Bank of Nigeria (CBN) stopped forex sales to Bureau De Change operators.

At the parallel market/black market where BDC trade, the naira to dollar exchange rate depreciated and closed at N505 to one dollar compared to N504 to one dollar rate on Monday, July 26, 2021.

The members of the Monetary Policy Committee (MPC) at the end of a two-day meeting said the $5.7 billion (about N2.346 trillion) annually through the BDCs will now be diverted to commercial banks for the use of customers.

The CBN Governor, Godwin Emefiele, also said the CBN will no longer continue registration of new BDCs as subsequent forex will be channelled through commercial banks.

The CBN governor directed all commercial bank branches to create a separate desk for forex sales as part of the new policy.

The BDCs were regulated to sell a maximum of 5,000 dollars per day, but CBN observed that they have since been flouting that regulation and selling millions of dollars per day.

“The CBN also observed that the BDCs aid illicit financial flows and other financial crimes.  The bank has thus decided to discontinue the forex sales to BDCs with immediate effect.

“We shall, henceforth, channel all forex allocation through the commercial banks,” he said.

“Once a customer presents all required documentation to purchase forex, the commercial banks should ensure they get the forex. Any customer that is denied should contact the CBN on 0700385526 or through the email- [email protected]

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About Cynthia Charles 1192 Articles
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