CBN Orders Banks to Sell Dollar at N360

By Modupe Gbadeyanka

Commercial banks operating in Nigeria have been directed by the central bank to sell forex to their retail customers at the rate not more than N360 per Dollar.

The apex bank gave this order on Monday via its spokesman, Mr Isaac Okorafor, in a tweet.

Mr Okorafor noted that banks would be monitored on the level of compliance, warning that any erring financial institution would be severely dealt with.

According to the Central Bank of Nigeria (CBN), it will make forex available to banks at the rate of N357/$1, while they are expected to sell to their customers at N360/$1 for invisibles (BTA, medicals, fees, etc).

The central bank directed all commercial banks to display the new rates in their banking halls of their branches immediately.

Mr Okorafor advised all customers requesting forex for their personal and business travel allowances (PTA and BTA), tuition and medical fees, should buy at a rate not more than N360 to the Dollar.

This rate change, according to the CBN, only affects invisible transactions for retail users, while the interbank rate, which trades at a band around the N307/$ mark, still remains.

The apex bank made this move to further push down the rates in the parallel market, where the exchange rate closed at about N390/$1 last week, especially if the CBN can maintain its interventions.