Naira might appreciate further as CBN injects another $85 million to forex market

Just after stating that Dollar should be sold by commercial banks to customers at N360/$,  the Central Bank of Nigeria, CBN, has released $85 million to banks for sale to customers.

READ: CBN directs all commercial to sell dollar not above N360

The forex was sold to the banks at the new rate of N357 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 authorized 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,” Mr. said. “The examiners from the CBN would visit banks to ensure the new rates are implemented as directed.”

Mr. Okorafor warned that the new move by the CBN was aimed at further easing access to forex by genuine end-users, pointing out that banks were prohibited from selling foreign exchange funds meant for invisibles to Bureau De Change.