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CBN set to inject additional $240 million forex to BDCs, others this week

The Central Bank of Nigeria (CBN) will from today, Tuesday, continue its ongoing foreign exchange market intervention. The bank is expected to disburse $240 million to commercial banks and operators of Bureau D Change (BDC).

Details of the disbursement show that out of the facility, $90 million is for invisibles – business/personal travel allowances, medical, school fees, among others, while $150 million goes to interbank wholesale auction window targeted at real sector operators.

The apex bank had last week made it clear that it is targeting to stabilise the interbank market and weaken speculators by strengthening the naira at the parallel market, a strategic step towards effecting all rates convergence.

However, industry analysts say stabilizing naira without a proportionate growth in the productive sector which usually determines the weight and strength of every nation’s currency only show currency cosmetology which may not pass the test of time.

Explaining more the apex bank’s image maker and Acting Director of Corporate Communications, Isaac Okorafor, said the bank had adjusted the planned sale of dollars to bureaux de change (BDCs).

CBN now offers dollar auction to the BDCs only on Tuesdays to reduce logistical difficulties, while they will, from today, be offered $10,000 each for resale to end users.

While noting that the CBN had directed banks to make cash available to desirous foreign exchange customers at over-the-counter transactions, he restated warning commercial banks and other dealers against sabotaging the efforts/

The bank further advised customers to report infractions to the CBN through 07002255226 or email to cpd@cbn.gov.ng, with the name and branch of the bank.