CBN reviews forex policy, begins direct additional funding to banks
Just as the naira tumbled to all time low of N529/dollar Monday, the Central Bank of Nigeria (CBN) has released a new foreign exchange policy in the country with immediate effect.
The new policy seemed to be an offshoot of last Thursday’s directive by the National Economic Council (NEC) mandating the apex bank to halt the widening gap between the inter-bank foreign exchange and parallel market rates.
Accordingly, the CBN said that 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, with immediate effect.
The naira depreciated by 0.77 per cent, to settle at N520/dollar even as the currency appreciated by 0.08 per cent at the interbank forex market, to close at N305.25/dollar.
