CBN increases forex allocation to banks, assures liquidity for SMEs, travellers

The Central Bank of Nigeria (CBN) says it will increase foreign exchange allocated to banks for travellers, Small and Medium Enterprises (SMEs).

The decision was made at a meeting headed by Godwin Emefiele, CBN governor, and attended by managing directors of Deposit Money Banks (DMBs), during the weekend.

Providing updates on the discussion, Osita Nwanisobi, CBN spokesman, in a statement, said the apex bank agreed to increase forex supply to banks.

Nwanisobi noted that the increase in forex allocation is meant to cater for the demand of travellers and business operators.

He said travellers will be given the opportunity to purchase forex for personal travel allowance (PTA), basic travel allowance (BTA), tuition fees, and medical payments.

The spokesman added that the forex allocation will also cater for SMEs transactions or for the repatriation of foreign direct investment (FDI) proceeds.

“The CBN agreed to increase the amount allocated to banks for travellers, Small and Medium Enterprises among others,” the statement reads.

“The banks also agreed to operate something akin to foreign exchange imprest account such that the coffers of banks will be replenished so long as they retire the initial amounts to the satisfaction of the CBN.

“We wish to assure members of the public that the CBN shall continue to monitor market developments and is committed to ensuring an efficient FX market for all legitimate users.”

Nwanisobi said the CBN remains committed to ensuring liquidity in the foreign exchange market to meet genuine and legitimate demands of customers.

He urged members of the public to visit the customer service representatives of their designated banks should they encounter any difficulty.

The spokesman added that members of the public can escalate complaints to the CBN via the bank’s toll-free line: 07002255226 or send an email to [email protected] if their requests are not granted.

Nigeria has recorded a huge decline in its foreign exchange receipts following the impact of COVID-19 which resulted in a shortfall in crude oil prices.

Stakeholders in various sectors have asked the CBN to increase forex allocation to boost their operations.

On Thursday, United Kingdom companies operating in Nigeria had also asked the federal government to provide more forex for them to meet their financial obligation.