CBN pegs exchange rate at N360/$1

The Central Bank of Nigeria (CBN) has directed all Deposit Money Banks to provide foreign exchange for those in need of it for school fees, medicals, Business and Personal Travel Allowance (BTA/PTA) at a rate of N360 to a dollar. It also directed the banks to immediately post the new N360/$1 rate on electronic display boards in the banking halls of their branches, adding that examiners from the CBN would visit banks to ensure the new rates are implemented. The CBN spokesmen, Mr Isaac Okoroafor, who confirmed the development reiterated the apex bank’s directive to all Deposit Money Banks to process and meet the demand for travel allowances by end-users within 24 hours of such application. In terms of applications for school fees and medical bills, he said these are to be met within 48 hours of such application. Okorafor explained that the new move is aimed at further easing access of genuine end-users to forex, adding that banks are now prohibited from selling foreign exchange funds meant for invisibles to Bureau De Change operators. He added that the apex bank has released a total sum of $185m into the foreign exchange market as part of moves to meet the demand of genuine users. The amount is made up of the sum of $85m for sale to Deposit Money Banks at the rate of N 357/$1 for onward sale to retail end-users at not more than N360/$1, for invisibles such as BTA, medicals, and school fees, among others. He said the balance of $100m was offered to authorised forex dealers in the interbank wholesale window to meet the requests of genuine wholesale customers. Okorafor said the rates in the interbank window for wholesale transactions would still be determined by activities in the interbank market, adding that all banks have been given directives on this. Going forward, he reiterated that all banks would receive amounts commensurate with their demand per week, which would be sold to customers who meet usual basic documentary requirements. He, therefore, urged customers to report any erring bank to the CBN for investigation and appropriate sanction.