FOREX supply gets $195 million boost from CBN

Central Bank of Nigeria (CBN)
Central Bank of Nigeria (CBN)

Acting Director, Corporate Communications Department of Central Bank of Nigeria (CBN), Isaac Okorafor on Tuesday confirmed the release of additional $195 million into the foreign exchange market.

According to him, the move was a “prompt and proactive” action of the apex bank in line with its promise to keep the market liquid enough to meet the needs of genuine requests.

There was much speculation at the weekend that CBN was ready to sustain its determination to supply adequate foreign currency for visible and invisible purposes including wholesale auctions and school fees, medical expenses and basic travel allowance.

The $195 million comprised of $150 million for the wholesale auction and $45 million in the invisible segment for such items as medical fees, tuition fees, Personal Travel Allowance (PTA) and Business Travel Allowance (BTA).

Mr Okorafor also alluded to the fact that deposit money banks (DMBs) were becoming saturated with foreign exchange as most of them are now able to meet demands for foreign exchange within the stipulated time frame.

“As you can see, all the pent-up demand for invisibles have been met to the extent that banks are urging customers to come and obtain forex”, he said.

He reiterated the Bank’s determination to continue to fund the importation of raw materials and plant and machinery for manufacturing, agriculture, and other eligible items.

He also assured that the Bank remained resolute in ensuring stability in the forex market by keeping an eagle eye on the activities of authorised dealers in order to ensure sharp practices are reduced barest minimum.

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