CBN backs up N360/$ directive with $85m supply

IN order to meet requests from customers for foreign exchange following its decision on Monday to set the upper limit of the exchange rate at N360 per dollar, the Central Bank of Nigeria (CBN), has released $85 million to banks for sale to customers.

The forex was sold to the banks at the new rate of N 357 to the dollar for onward sale to retail end-users at the new ceiling rate of not more than N360.

The spokesperson of the CBN, Isaac Okorafor, said the forex was to meet the demand for invisibles such as Basic and Personal Travel Allowances, medicals and school fees.

Mr Okorafor said the allocation on Monday was in addition to about $100 million to authorised forex dealers in the interbank wholesale window to meet the requests of genuine wholesale customers.

He said the rates in the interbank window for wholesale transactions would still be determined by activities in the interbank market.

“All banks had also been directed to immediately post the new N360 per dollar rate on their electronic display boards in the banking halls of their branches for easy monitoring of compliance.

“The examiners from the CBN would visit banks to ensure the new rates are implemented as directed,” he said.

The CBN spokesperson restated the bank’s directive to all banks to process and meets the demand for all travel allowances by end-users within 24 hours of such applications, while requests for school fees and medical bills would be met within 48 hours of such application.

Mr Okorafor warned that the new move by the CBN