Report: CBN to inject more dollars in banks to increase FX supply

The Central Bank of Nigeria (CBN) says it will pump more dollars to authorised banks on Friday to boost foreign exchange (FX) supply in the economy. 

According to ThisDay, senior CBN officials said the apex bank can meet all legitimate transactions channelled through the banks.

The officials explained that the black (parallel) market represented less than one percent of FX transactions and should never be used to determine Nigeria’s dollar exchange rate.

The report stated that the apex bank had met ministries, agencies and departments (MDAs), including airline operators, to stop collecting payment in foreign currencies.

The officials also disclosed that those who collect rent in dollars would be prosecuted, adding that if anyone needed dollars for foreign transactions, they should go to their banks.

“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,” CBN officials told ThisDay.

“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.”

In July, CBN stopped the sale of FX to Bureau De Change (BDCs) operators in the country. It then directed deposit money banks (DMBs) to set up teller points to meet legitimate forex demands.

The Economic and Financial Crimes Commission (EFCC), on Wednesday, warned banks against selling foreign currencies to customers with no intention of travelling outside the country.

The naira dropped to N545 to a dollar in the Lagos black market on Wednesday — the lowest level in its 48-year history.