stock exchange

CBN increases forex allocations to banks for SMEs, tuition fees, travellers

3 Mins read


Nairametrics
Home Business
CBN increases forex allocations to banks for SMEs, tuition fees, travellers
Chike Olisahby Chike Olisah June 7, 2021Reading Time: 2 mins read
diaspora remittances, Total credit to the economy rose to N19.54trillion – CBN Governor, CRR debits, P-AADS, #EndSARS: CBN says funds in frozen accounts may be linked to terrorist activities, Covid-19: Court closures impacted revenue generation for courts – Emefiele, P&ID dispute: UK Court orders $200 million guarantee to FG, Leaked letter by Poultry Farmers Association triggered CBN emergency approval to import maize, nImplications of CBN’s latest devaluation and FX unification, current account deficit, IMF, COVID-19, CBN OMO ban could give stocks a much-needed boost , CBN’s N132.56 billion T-bills auction records oversubscription by 327% , Nigeria pays $1.09 billion to service external debt in 9 months , Implications of the new CBN stance on treasury bill sale to individuals, Digital technology and blockchain altering conventional banking models – Emefiele , Increasing food prices might erase chances of CBN cutting interest rate , Customer complaint against excess/unauthorized charges hits 1, 612 – CBN , CBN moves to reduce cassava derivatives import worth $600 million , Invest in infrastructural development – CBN Governor admonishes investors , Credit to government declines, as Credit to private sector hits N25.8 trillion, CBN sets N10 billion minimum capital for Mortgage firms, CBN sets N10 billion minimum capital for Mortgage firms , Why you should be worried about the latest drop in external reserves, CBN, Alert: CBN issues N847.4 billion treasury bills for Q1 2020 , PMI: Nigeria’s manufacturing sector gains momentum in November, CBN warns high foreign credits could collapse Nigeria’s economy, predicts high poverty, MPC Member, BVN, Fitch, Foreign excchange (Forex), Overnight rates crash after CBN’s N1.4 trillion deduction, Nigeria’s foreign reserves hit $36.57 billion; Emefiele keeps his word on defending the naira, CBN to support maize farmers, projects 12.5 million metric tons in 18 months, BREAKING: CBN Upscales Greenwich Trust Limited, grants it’s operational license for merchant banking, AGSMEIS: CBN expand beneficiaries to 14,638., CBN expands access to mortgage financing
CBN Governor, Godwin Emefiele


The Central Bank of Nigeria (CBN) has announced an increase in the amount of foreign exchange allocated to banks to meet the requests of customers.

This follows requests of travellers seeking foreign exchange for travel allowances, payment of tuition and medical fees, among other Invisibles, and a warning issued by the CBN Governor, Mr Godwin Emefiele, at a meeting with the Managing Directors of Deposit Money Banks (DMBs).

The caution is coming due to complaints and challenges faced by customers in accessing forex from banks with the apex bank warning that it will take action against any bank that denied customers the opportunity to purchase foreign exchange for legitimate purposes.

This disclosure was made by the Acting Director, Corporate Communications Department of CBN, Osita Nwanisobi, on Sunday, June 6, 2021, who confirmed the discussions at the meeting of bank chiefs.

It was stated that Emefiele warned the Chief Executives of banks to stop denying customers, particularly travellers, the opportunity to purchase foreign exchange.

This includes a foreign exchange for the purposes of Personal Travel Allowance (PTA), Basic Travel Allowance (BTA), tuition fees, and medical payments as well as Small and Medium Enterprises (SMEs) transactions or for the repatriation of Foreign Direct Investment (FDI) proceeds.

According to the sources, CBN may release hotlines for aggrieved customers to report banks that fail to sell foreign exchange to them even after providing required documentation.

What the CBN Director of Corporate Communications is saying
Nwanisobi said that the bank remained committed to ensuring liquidity in the foreign exchange market and ensuring it meets genuine and legitimate demands of customers.

He said, “The CBN agreed to increase the amount allocated to banks for travellers, Small and Medium Enterprises among others.

The banks also agreed to operate something akin to foreign exchange imprest account such that the coffers of banks would be replenished so long as they retire the initial amounts to the satisfaction of the CBN.”

Nwanisobi urged interested members of the public seeking to purchase foreign exchange for PTA, BTA, payment of tuition fees or medical fees to approach their respective banks for that purpose.

He said, “We wish to assure members of the public that the CBN shall continue to monitor market developments and is committed to ensuring an efficient FX market for all legitimate users.”

Nwanisobi urged them to forward their complaints to the Central Bank of Nigeria via the Bank’s toll-free line: 07002255226 or send an email to cpd@cbn.gov.ng if their requests are not met.

Bottomline
The increase of forex allocation to the deposit money banks will go a long way in meeting forex demand for genuine users and ease pressure on the black market.

The exchange rate has been on the increase at the black market, mostly due to activities of speculators, since the adoption of the NAFEX rate as the official exchange rate by the CBN.

534 Comments

Leave a Reply

Comment Rules

  • Please show respect to the opinions of others no matter how seemingly far-fetched.
  • Abusive, foul language, and/or divisive comments may be deleted without notice.
  • Each blog member is allowed limited comments, as displayed above the comment box.
  • Comments must be limited to the number of words displayed above the comment box.
  • Please limit one comment after any comment posted per post.