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CBN Directs Banks to Open Outlets at Major Airports for Sale of Foreign Currencies

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To ease the burden of travellers, the Central Bank of Nigeria (CBN) has directed all banks to open Foreign Exchange outlets to sell dollars and other currencies at major airports.

According to a statement signed on Tuesday by the CBN acting Director of Communications, Isaac Okorafor, the banks are to do so as soon as logistics permit.

Okorafor said that this would also ensure that transactions were settled at much more competitive exchange rates.

“Similarly, the CBN is providing direct additional funding to banks to meet the needs of Nigerians for Personal and Business Travel, Medical needs, and School fees, effective immediately.

For medical and school fees, such payments must be made by commercial banks directly to the institution specified by the customer.

The CBN would ensure that this process is as smooth as possible and that as many customers as possible get the foreign exchange they genuinely demand.

The CBN expects such retail transactions to be settled at a rate not exceeding 20 per cent above the interbank market rate,” he said.

Okorafor said that the apex bank had also reduced the tenure of its Forward Sales from the current maximum cycle of 180 days, to not more than 60 days from the date of transaction.

“In order to maintain confidence in the FX market, the CBN will immediately begin implementing its articulated programme to clear all the unfilled orders in the interbank FX market.

Given our plan to meet all unfilled orders, and provision of FX to the manufacturing sector would remain the CBN’s strong priority, we will no longer impose allocation rules on commercial banks.

We will implement an effective intervention programme to support the inter-bank market to ensure adequate liquidity necessary to deliver an efficient FX market,” he said.

Okorafor said that the FMDQ trading had also been advised to activate its Foreign Exchange Order-Book systems as soon as possible and also accelerate the on-boarding of FX clients on the FX Relationship Systems to ensure total transparency of the FX market.

The apex bank urged market participants to assist in ensuring that these new measures were followed to preserve the external reserves, stability of the financial system and economic growth for the benefit of all Nigerians.

5 Comments

  1. nelo

    February 20, 2017 at 8:57 pm

    CBN under emefiele is just clueless and stupid. Everyday new directives with zero propensity to execute. Banks are refusing to sell at the approved rates. That is aside bank employees defrauding the forex system.

  2. Andrew

    February 20, 2017 at 8:57 pm

    A good move to curtail those criminal black marketers but the worrying part is as soon as logistics permits.. Hope that wont take forever

  3. FasholasLover

    February 20, 2017 at 9:24 pm

    My cousin wants to visit the UK and she applied to her bank to buy FX. She was told to come back in two weeks. She turns up in two weeks and was told sorry no FX. Someone in the bank advised her to demand for the form/application she submitted requesting for FX. The gist is that bank staff request for FX on the strength of your application, tif the FX for themselves for sale in the black market and tell you babu FX. BNers is this what is going on? If there is no FX in the banks, why would there be at the airport? You had better source for FX before you reach the airport otherwise, OYO is your case.
    Shame on Nigeria. FX that you can buy at the post office, big chains on the high street, online, airport etc is diamond in Nigeria. All the Alhajis have turned septic tanks into underground safe/banks. When l look at the stack by Yakubu, l get migraine. No wonder the average man/woman cannot compete. The thieves are able/willing to buy at any amount.

  4. Macy

    February 21, 2017 at 6:04 pm

    Banks just enjoy making life difficult for people requiring FX. I hope this new initiative is not a way for them to exploit people. I already suspect them saying currency is not available all of the time and then it is available to a black market operator right outside the same bank or loitering around insider the same pop or loitering around the same outlet..On fact the bank officer will advice you if you really need it, this is your best option, to buy from the black market operator who seems to be a little better than normal black market operators..All in collabo with the bank. This our country sef!!
    I know, cos it is already happening … Sad!!!!

  5. Macy

    February 21, 2017 at 6:05 pm

    Typos and all, we are all venting about this!!!

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