Central Bank to begin direct forex funding to commercial banks

The Central Bank of Nigeria has announced a new foreign exchange policy in the country with immediate effect.

The new policy is for immediate review to bridge the widening gap between the inter-bank foreign exchange and parallel market rates.

The CBN said in order to ease the difficulties encountered by Nigerians in obtaining funds for foreign exchange transactions, it would henceforth be providing direct additional funding to banks to meet the needs of Nigerians for personal and business travel, medical needs, and school fees, effective immediately.

The apex bank also said such retail transactions would be done at a rate not exceeding 20 per cent above the interbank market rate.