The naira on Monday dropped
further to 370 per United States dollar in the parallel foreign exchange
market.
This indicates that Nigerian
currency depreciated against the dollar by N2 over the weekend.
The naira had exchanged at 368 to
the dollar last Friday
Meanwhile, Central Bank of
Nigeria (CBN) has threatened to sanction any Deposit Money Bank (DMB) in breach
of its earlier directive instructing them to open teller points for retail
forex transactions and to have electronic display boards in all their branches,
showing rates of all trading currencies.
A circular issued on Monday
warned that the CBN would mete out stiff regulatory sanctions to banks that
fail to comply fully with the directive by October 13, 2017.
The circular signed by the
Director, Banking Supervision, Ahmad Abdullahi, stressed that the bank would
bar erring DMBs from all future CBN foreign exchange interventions.
The CBN had in March 2017
directed banks and authorized dealers to open a teller point for retail FX
transactions (PTA/BTA and SME) including buying and selling, in all locations
in order to ensure access to foreign exchange by their customers and other
users, without any hindrance.
The circular also directed DMBs
to have electronic display boards in all their branches, showing rates of all
trading currencies, which it urged customers to insist on in processing their
foreign exchange transactions for invisibles and the SMEs window.
While noting that the objective
was aimed at creating awareness among members of the public regarding the
availability of such facilities in branches of the banks at clearly disclosed
prices, the CBN frowned at the banks for not fully complying with its
directives.
Accordingly, the CBN had given
the erring banks a four-week period, expiring on October 13, 2017, to fully
comply with its directives or face regulatory sanctions, which it noted include
but not limited to being barred from all future CBN foreign exchange
interventions.
However, the apex bank yesterday
sustained its intervention in the various sectors of the inter-bank Foreign
Exchange market with the injection of $545 million.
Acting Director, Corporate
Communications, Isaac Okorafor, revealed that the retail Secondary Market
Intervention Sales (SMIS) received the largest intervention of $285 million.
Other components of the released figures include the $100 million offered for
wholesale SMIS, $90 million for Small and Medium Enterprises (SMEs) window and
$70 million for invisibles such as Basic Travel Allowances, tuition fees and
medical payments.
According to Okorafor, the amount
released underscored the CBN’s avowed commitment to ensure a liquid interbank
foreign exchange market, where all genuine requests will be met in line with
extant forex guidelines.
The CBN spokesperson expressed
optimism that, with the accretion to the nation’s foreign reserve, the Bank
would continue to fulfil its mandate of safeguarding the international value of
the legal tender. He further disclosed that the Bank’s management also remained
optimistic about achieving a convergence between the forex rates at both the
inter-bank and BDC segments.
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