CBN to banks: sell Forex to customers/non customers, BDCs to get dollars days in a week

The Central Bank of Nigeria, CBN, has directed all banks to sell foreign exchange to anyone that is willing to purchase over the counter irrespective of whether the person is a customer or not, upon presentation of relevant documentation. The apex bank said any bank that contravenes this directive will be sanctioned.

The CBN also said that it has increased the frequency of sales of forex to licensed BDCs to three times weekly,  Mondays, Wednesdays and Fridays instead of twice weekly. It said “All Deposit Money Banks are mandated to buy and sell foreign currency to travelers (both customers and non customers) upon presentation of relevant valid travel documents such as visa and tickets over the counter. All travelers shall be attended to immediately at the bank’s counters. Any contravention will be sanctioned by the CBN.

“It is compulsory that all BDCs Access Currency at least three times weekly.  Any BDC that fails to access the FX window at least three times weekly shall have their license reviewed by the CBN. Compliance is Compulsory,” CBN said in a statement signed by Isaac Okorafor, its Ag. Director, Corporate Communications it will sell foreign exchange to BDCs on Mondays and the BDCs have Tuesdays to fund their accounts at the CBN and then come for another round of sales on Wednesdays, fund their accounts on Thursday and then purchase on Fridays. “This will make sufficient dollars available all days in the week. The CBN move is coming following the depreciation of the Naira against the dollar by about four points in that past days in what is believed to be an attack on the local currency by speculators who are deliberately hoarding dollars. The Naira had stabilised at around N360 – $1 at the open market for over three quarters before the current pressure.